Will Reliance Own Naturals? Salon Chain Considers IPO Backup Plan

Naturals, one of India’s largest salon chains, is weighing a public listing by 2028 if its stake-sale negotiations with Reliance Retail do not materialize. Co-founder C.K. Kumaravel confirmed that talks have stalled, primarily over Reliance’s demand for a 51% controlling stake, while Naturals is willing to part with only 49% to retain operational control.

The discussions, first initiated in 2022, were expected to accelerate Reliance’s entry into India’s salon and beauty services market, complementing its retail expansion. However, with no agreement reached, Naturals is preparing an IPO roadmap to fuel its ambitious growth plans, which include expanding its network of over 700 salons across 20 states.

Key Highlights:

• Reliance Talks: Negotiations slowed due to stake-structure disagreements.
• IPO Plan: Naturals targets a public listing by 2028 if talks fail.
• Ownership Strategy: Company seeks to retain majority control.
• Expansion Goals: Plans to scale salon network four- to five-fold.
• Market Context: Reliance’s entry would strengthen its beauty retail portfolio.

The outcome of these talks will determine whether Naturals aligns with Reliance’s retail empire or pursues independent growth through capital markets.

Sources: Reuters, The Economic Times, Yahoo Finance