Beauty and wellness firm Nykaa has signed a partnership with Middle East-based retailer Apparel Group, to launch a new multi-brand retailer online and offline in the Gulf Cooperation Council (GCC) region.
The multi-brand retailer will initially operate in the beauty and personal care (BPC) segment.
Nykaa will hold 55 percent in the new venture via its subsidiary FSN International Private Limited, whereas Apparel Group would hold the remaining 45 percent. Nykaa's Founder and CEO Falguni Nayar said initially, the investment won't be significant. "It is too early to talk about the initial investment from both partners," she said.
Apparel Group has more than 78 brands under its umbrella, across 14 countries. The brands include Aldo, Bath & Body Works, Calvin Klein, Charles & Keith, among others.
Closer home, Apparel Group India runs Aldo, Bath & Body Works, Beverly Hills Polo Club, Charles & Keith, Inglot, R&B, Victoria's Secret, La Senza, among others.
The GCC includes Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia & the United Arab Emirates (UAE).
Earlier this week, the board of FSN E-Commerce Ventures, the parent company Nykaa, announced five bonus shares for each share shareholders held. Bonus shares are fully-paid additional shares issued by a company to its existing shareholders.
Nykaa’s board said they would seek shareholders’ approval through a postal ballot and other approvals for the share issue. It fixed November 3 as the record date for determining members eligible for the bonus equity shares.
Nykaa, founded in 2012 by former investment banker Falguni Nayar, has a diverse portfolio of beauty, personnel care and fashion products. Its shares were listed on the Indian stock market in November last year.
Its shares ended 1.6 percent lower on the BSE at Rs 1,285.2 apiece on Thursday, October 6.
