Nykaa enters into joint venture with UAE-based fashion retailer Apparel Group
According to an exchange filing, Nykaa has received board approval to sign an agreement with Apparel Group, a global fashion and lifestyle retail conglomerate headquartered in the United Arab Emirates (UAE).
FSN E-Commerce Ventures, the parent company of Nykaa, on Friday announced that it has entered into a strategic alliance with Middle East-based Apparel Group to recreate an omnichannel beauty retail platform in the GCC (Gulf Cooperation Council), the company said in its regulatory filing.
According to an exchange filing, Nykaa has received board approval to sign an agreement with Apparel Group, a global fashion and lifestyle retail conglomerate headquartered in the United Arab Emirates (UAE).
With the agreement, Nykaa hopes to grow in a region where it sees high demand for beauty products, months after inflationary pressures in India led it to report a subdued season in the three months ended June.
Nykaa will leverage the Apparel Group’s robust retail infrastructure network and deep market relationships to build distinctive GCC focused beauty offerings in the UAE, Kingdom of Saudi Arabia (KSA), Qatar, Oman, Kuwait, and Bahrain, according to the company.
“We look forward to recreating our distinct beauty retail value proposition internationally, beginning with the GCC, with the Apparel Group. Through this alliance, we are confident of growing the GCC beauty market and bringing the best of both brands to a new world of consumers," Falguni Nayar, Founder, and CEO, Nykaa said.
Sima Ved, founder and chairperson, Apparel Group said that the alliance is going to be a new chapter in the company's expansion journey as "we look forward to leveraging each other’s strengths and offer unique value proposition to our consumers in the GCC region”.
The Apparel Group is one of the largest omnichannel retailers in the Middle East based in United Arab Emirates and its was founded by Sima Ved in 1996. It is home to more than 75 lifestyle and beauty brands with over 2,000 stores in 14 countries.
The share price of Nykaa was trading flat with a negative bias to Rs 1286 per share on the BSE intraday today. Earlier last week, the company announced a bonus share issue in the ratio of 5:1. The stock in the last one year has dipped almost 42 per cent and over 38 per cent year-to-date.
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