Reliance's Luxury Business Faces Downturn as Demand Weakens in FY25

Reliance Industries reported a slowdown in its premium and luxury retail business during FY25, with growth in the segment easing amid weaker demand in discretionary categories, as per its annual report. Reliance Brands Limited, the company’s luxury arm, posted a 5% rise in sales to ₹2,616 crore for the year, compared with 12% growth in FY24.

The business recorded a net loss of ₹279 crore in FY25. Despite the reduction, the business remains in the red, reflecting continued pressure on profitability.

Reliance Brands Established in 2007

Reliance Brands was set up in 2007 and has since built a portfolio of over 85 global luxury and lifestyle labels. These include fashion and accessory brands such as Burberry, Coach, Diesel, Jimmy Choo, Kate Spade, Versace, Bottega Veneta, and Tiffany & Co., along with dining and lifestyle ventures like Pret A Manger.

Portfolio Additions in FY25

According to the company’s annual report, the premium brands division added new brand partnerships during the year. It also focused on expanding its owned intellectual properties into international markets. The company did not provide details of the new brands added during the financial year.

India’s Largest Luxury Retailer

Reliance Brands operates across multiple categories, including fashion, footwear, accessories, and dining. It serves as the exclusive partner for several international labels in India. The company has more than 50 international brands within its retail operations, making it the largest luxury retailer in the country.

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Conclusion

FY25 saw Reliance Brands’ growth rate in the luxury and premium retail space slow to less than half the pace of the previous year. Losses narrowed slightly, and the company continued to add brands to its portfolio, but the segment was impacted by weaker consumer demand in discretionary spending categories.

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