Reliance buys ITC's menswear brand John Players
26 March 2019
Reliance Industries has acquired ITC’s menswear brand John Players and related trademarks and intellectual property for an undisclosed amount. The acquisition was made through its retail arm Reliance Retail Ltd.
Reliance said the acquisition would strengthen RRL's readymade garments and accessories portfolio in the fashion and lifestyle retail space
Diversified group, ITC Ltd said the transaction is part of ITC’s restructuring exercise for its loss-making apparel business.
“As part of the strategic review of the Lifestyle Retailing Business, a restructuring plan is underway. In line with this ongoing restructuring, ITC has sold the brand ‘John Players’ and related trade-marks and intellectual property, and the goodwill related thereto, to Reliance Retail Limited,” reports quoted an ITC spokesperson assaying.
While neither ITC nor Reliance reveal the transaction amount, source close to the development pegged the deal at about Rs150 crore.
ITC will now focus on its premium brand WLS (formerly Wills Lifestyle), which caters to the premium end through the WLS stores that were re-launched earlier this year.
ITC entered the apparel business in 2000 and two years later launched the ‘John Players’ brand. However, the company’s lifestyle retailing business was hit by competition from value players as well heavy discounting by e-tailers.
While Reliance has its own brand which is sold through the Reliance Trends stores, the acquisition of ITDC’s John Players brand would strengthen Reliance Retail’s readymade garments and accessories portfolio in the fashion and lifestyle retail space.
A diversified portfolio of fashion garments and accessories would help Reliance expand its share in the e-commerce segment and take on the likes of Amazon and Walmart-owned Flipkart.