Reliance Brands, a subsidiary of Mukesh Ambani-led Reliance Retail, plans to make strategic growth capital investments in India's fashion industry. It is looking to lift up between 33% and 49% stake in high-street designer enterprises as well as main street fashion brands.
 
Reliance Brands, spearheaded by industry veteran Darshan Mehta, may invest up to Rs 200 crore to back entities that are driven by talent as well as a business vision. "We could look at all fashion-related assets and not necessarily startups alone," Mehta told. The three-year-old company has been in discussions for what it calls "risk investments" in fashion and may cut the first deal in the course of the calendar year.
 
"We want to partner with designers, brands and even interesting e-commerce models with India footprint as their core business proposition," Mehta said. "A deal will be done only when there is complete understanding between us and the entrepreneur from day one. There have been failed experiments in the past," he added.
 
Reliance is not eager on taking a mass control but desires to part own the intellectual property in such transactions, which are similar to PE deals in strength. The company has not set aside any precise corpus for its recommended investments.

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Posted by Yogendra Oza on 20 January, 2011 6:22:47 PM IST #