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Now Reliance Retail is going the Future Group way by providing private equity to companies who have the potential to become partners. Reliance Brands, a subsidiary of Reliance Retail, may provide capital to companies and brands in the apparel, footwear and lifestyle segments, reports The Hindu Business Line. The company is reportedly in the process of identifying companies with designer-led brands and Indian labels in need of funds and managerial expertise. “We are looking at growing inorganically by investing in companies and brands which have run out of money and management competencies and will be acting as private-equity partners to them,” Darshan Mehta, CEO & MD, Reliance Brands Pvt Ltd, told the paper. Reliance Brands was set up in October this year as a 100 per cent subsidiary of the Reliance Retail Ltd. Mehta was earlier the CEO of Arvind Brands of the Lalbhai Group.
Future Group, however, has a full-fledged fund - Indivision Capital - to do private equity activities. The firm not only makes investments in companies where the group's Pantaloon Retail has a synergy (such as vendors), but also invests in ventures like Dish TV (DTH), and or wind turbine maker Regen Powertech.