Reliance Industries is close to buying a substantial stake in Portico, a home fashion brand, two people with direct knowledge of the matter said.
Portico is a fast-emerging brand owned by the Creative Group that manufactures and sells bed and bath products through its own stores as well as other online and offline retailers. According to both people, Reliance had approached the company for a majority stake.
“The deal is almost done,” one of them told ET. “The company (Portico) could be integrated with Alok Industries too.”
In February last year, Reliance had said it would acquire a 37.7% stake in Alok Industries for ₹250 crore, after it bid jointly with JM Financial Asset Reconstruction Co for the bankrupt textile manufacturer.
ET could not ascertain the likely valuation of Portico as negotiations are still underway.
Reliance and Portico did not respond till press time Monday to emails seeking comment sent in the afternoon. On its website, Portico describes itself as one of the largest players in the home fashion segment.
“Despite its relatively late entry into the market, Portico India swiftly made up for lost time and is currently ranked as the Number 2 player in the country. Its main prowess continues to be in the bed and bath segment but is rapidly becoming a formidable player in home and interiors too. Currently, over 200 outlets showcase Portico’s products,” the company says.
Portico also has operations in New York, but that entity is not part of the deal negotiations, one of the people said.
The talks come at a time when Reliance is on a buying spree in the digital and retail segments, seeking to create an online-offline ecosystem that caters to all major needs of the consumer.
