Betting on Profits: Is Isha Ambani Buying Alia Bhatt's Brand?

Reliance Brands Pvt Ltd, a subsidiary of Reliance Retail Ventures, is poised to acquire the popular kids wear brand Ed-a-Mamma, owned by Bollywood actress Alia Bhatt. Ed-a-Mamma is the same brand which was in news recently for crossing Rs 100 Crore mark within a short span.

According to a report by The Economic Times, the deal is currently in its final stages and is expected to be finalized within the next seven to ten days. The acquisition is estimated to be valued between Rs 300 crore and Rs 350 crore. This strategic move is anticipated to bolster Reliance's children's wear portfolio and further strengthen its position in the market.

Ed-a-Mamma, which was established in October last year, focuses on catering to children aged 2 to 14 with a commitment to sustainability. The brand has gained significant traction since its inception and is currently ranked as one of the top three brands in the kids wear category on Myntra, a leading Indian e-commerce platform. In addition to its presence on its own website, Ed-a-Mamma's products are distributed through the top six digital marketplaces.

What Made Ed-a-Mamma So Successful?

Ed-a-Mamma's success can be attributed to its dedication to providing sustainable clothing options for children at affordable rates. The brand has garnered praise for its commitment to the environment and aims to encourage children and parents to foster a love for the planet. Alia Bhatt, the visionary behind Ed-a-Mamma, expressed her aspirations for the brand, stating, "I wanted to focus on bridging a need gap. There was a need for a world-class children's clothing brand, which is Made in India."

How Will Reliance Benefit from The Deal?

If the acquisition is finalized, it will offer Reliance Brands an opportunity to expand and diversify its kids wear offerings. Ed-a-Mamma has already established a strong presence in the market, with its products available on prominent online platforms such as FirstCry, AJIO, Myntra, Amazon, and Tata CLIQ, in addition to the brand's own webstore. The company has also secured partnerships with retail chains like Lifestyle and Shoppers Stop, further expanding its distribution channels.

Future Plans and Reliance Brands' Partnerships

Alia Bhatt had earlier expressed her plans to expand Ed-a-Mamma's offerings in the infant segment and introduce more vertical categories related to family care. 

Currently, Reliance Brands boasts partnerships with renowned international brands in luxury, bridge-to-luxury, high premium, and high street lifestyle segments, including Armani Exchange, Burberry, Bally, Bottega Veneta, Diesel, Emporio Armani, Ferragamo, Giorgio Armani, Jimmy Choo, Kate Spade, and Michael Kors, among others.

How Does Reliance Bet Big on Profits?

Reliance Industries Ltd. (RIL) has been actively acquiring high-profit companies in various sectors over the past three years. These acquisitions aim to enhance the product offerings of RIL's subsidiaries, including Reliance Jio Infocomm Ltd and Reliance Retail Ltd. 

RIL has invested significant amounts in media and education (USD 566 million+), retail (USD 194 million+), telecom and internet firms (USD 1.2 billion+), digital firms (USD 100 million+), and the chemicals and energy space (USD 391 million+). 

These strategic acquisitions align with RIL's goal of becoming one of the top 20 companies globally. Notable acquisitions include Balaji Telefilms, EdCast, Embibe, Saavn, Radsys, Eros, Hathway, DEN, Haptik, Reverie, Fynd, Purple Panda Fashions, Clovia, Tesseract, and Grab, further positioning RIL for future success.

With a focus on sustainability and affordability, Ed-a-Mamma has gained recognition as a top brand in the industry. As the deal approaches its finalization, industry observers eagerly await the official announcement from both parties, marking a significant milestone in the Indian fashion and retail landscape.