Indian Nykaa and Dubai Apparel Group forge alliance in the Gulf

NEW DELHI, Oct 6 (Reuters) – Indian cosmetics and fashion retailer Nykaa and lifestyle and fashion conglomerate Dubai Apparel Group have entered into an alliance to expand in the Gulf region, the companies said on Thursday. .

With the deal, Nykaa hopes to expand into a region where it is seeing strong demand for beauty products, months after inflationary pressures in India led it to report a “moderate season” in the three months to June. Read more

Nykaa’s managing director, Falguni Nayar, said the two companies would together establish a multi-brand beauty retail business in the Gulf Cooperation Council countries, with Nykaa holding a 55% stake in the entity and Apparel Group holding the remainder.

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The companies did not disclose financial details of the deal.

“We believe the per capita consumption of beauty products is very high in the region,” Nayar told reporters. “We see this as a multi-year growth opportunity.”

The TPG-backed retailer, which debuted in the market in November 2021, hitting a valuation of nearly $14 billion, expects stronger demand for its products in the current quarter.

The upcoming festival season, which runs through the end of the year, would further boost consumer demand for beauty, personal care and wellness products, which was showing early signs of recovery, said Nykaa said in August.

In a statement, Nykaa’s parent company, FSN E-Commerce Ventures Ltd (FSNE.NS), said its board had approved an agreement between its subsidiary FSN International Private Ltd and Apparel Group.

The agreement is for “an omnichannel, multi-brand beauty retail business” in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, through an entity that will be integrated into the Abu Dhabi global market, he added.

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Reporting by Abhirup Roy in Mumbai Writing by Shivam Patel in New Delhi Editing by Emelia Sithole-Matarise and Mark Potter

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