The country's leading retailer Reliance will acquire the beauty retail business of the Lalbhai family-promoted Arvind Fashion, expanding its play in the fast-growing Beauty and Personal Care (BPC) market.

Arvind Fashion on Friday said it has "entered into a Share Purchase Agreement (SPA) with Reliance Beauty & Personal Care Ltd, a wholly-owned subsidiary of Reliance Retail Ventures Ltd to sell and transfer the entire equity stake held by the company," it said.

Upon completion of the formalities under the said SPA, Arvind Beauty Brands Retail would cease to be a subsidiary of the company, according to a regulatory filing from the Ahmedabad-based company.

Over consideration of sales, the company said: "transaction has been done at an enterprise value of `216 crore towards the sale of the entire equity stake and repayment of loans. The Purchase consideration towards the sale of the entire equity stake is `99.02 crore."

Arvind Beauty Brands Retail had a turnover of `336.70 crore in FY23 and contributed 7.60 per cent of the consolidated revenue of Arvind Fashions.

Reliance Retail has entered into the fast-growing beauty business with Tira, an omnichannel beauty retail platform.

The country's leading retailer competes with brands like HUL's Lakme, Nykaa, Tata and LVMH's Sephora in India's growing beauty and personal care marketplace.

Reliance Retail Ventures Limited (RRVL) is the holding company of all the retail companies under the RIL (Reliance Industries Limited) group.

According to a joint report by Redseer Strategy Consultant and Peak XV (formerly Sequoia Capital India & Southeast Asia) - the Indian beauty and personal care market is estimated to grow to USD 30 billion by 2027, accounting for 5 per cent of the global market, according to a report.

The Indian Beauty and Personal Care (BPC) market -- estimated to be around USD 19 billion in 2022 -- has very low per capita spend in the category but as the country prospers, the growth headroom will materialise strongly, the report said

India is uniquely positioned as one of the most attractive and fastest-growing BPC markets globally, the report said.

Shares of Arvind Fashions Ltd on Friday were trading at `347.35 at BSE, up 6.71 per cent