Naturals and Reliance remain in talks over a stake deal, but differences on control have slowed progress, even as Naturals plans expansion and keeps an IPO option open for 2028.
Indian salon chain Naturals remains in discussions with Reliance over a potential stake sale. However, progress has slowed due to differences on deal structure.
The talks began in late 2022 but have not reached closure as the key issue remains control. Reliance has sought a majority stake, while Naturals prefers to sell a minority holding to retain operational control for the next few years.
Naturals has indicated that it is not engaging with other investors at this stage. The company sees strategic value in partnering with Reliance but is not under pressure to complete a transaction immediately.
IPO Remains the Alternate Path
If negotiations with Reliance do not conclude, Naturals plans to list on the stock market by 2028. The public listing route is positioned as a parallel growth strategy rather than a fallback option.
The company continues to focus on expanding its footprint and strengthening its network ahead of a possible market debut.
Market Position and Expansion Plans
With nearly 900 outlets, Naturals is among India’s largest organised salon chains. It operates ahead of several big peers in the market, in terms of store count.
The company reported gross merchandise value of Rs 4.5 billion in FY25 and expects this to rise to about Rs 6 billion in the current financial year.
Naturals plans to add 100 new salons this year. Expansion will focus on dense city clusters rather than scattered locations, with Pune identified as one of the priority markets.
Salon Market Growth Drives Interest
India’s beauty salon market is valued at about $10.8 billion and continues to expand. Growth is being driven by higher spending by younger consumers, rising incomes and increased participation of women in the workforce, according to Ken Research.
A potential stake in Naturals would give Reliance an entry into salon and spa services. This would complement its existing beauty retail presence through Tira as demand for makeup and skincare rises across urban markets.
