Naturals IPO window kept if deal with Reliance failed, said co-founder; GMV at INR 450 crore in FY25, eyes INR 600 crore this year
One of India’s largest organised salon chains, Naturals, is considering an initial public offering by 2028 if ongoing stake-sale discussions with Reliance do not culminate in a deal, co-founder C.K. Kumaravel said. The talks have slowed over differences on deal structure, he said in an interview.
Naturals IPO or Reliance Deal: Plan A and Plan B
Kumaravel said Naturals and Reliance remain engaged but have not agreed on contours of the transaction. Discussions, first initiated in late 2022, hit a roadblock when Reliance sought a 51% stake, while Naturals preferred ceding 49% to retain control for a few more years. “Even if it takes time, Naturals is not in a hurry, as Reliance will add significant value,” he said.
The company has about 900 outlets nationwide and plans to add roughly 100 more in 2026, including in Pune, Kumaravel said. Naturals reported gross merchandise value (GMV) of about INR 450 crore in FY25 and expects GMV to rise to around INR 600 crore in the current financial year.
A potential Naturals stake would give Reliance a services-led entry into salon and spa formats, complementing its beauty retail push under Tira. Reliance has been expanding Tira across online and offline channels and, more recently, has introduced own-brand products in colour cosmetics, underscoring ambitions in the beauty ecosystem.
Media reports have indicated Reliance Retail is itself preparing for a listing around 2028, as it calibrates footprint expansion and profitability—timelines that broadly align with Naturals’ Plan B for an IPO if the stake sale does not fructify.
Market Backdrop: Organised Salons Gain Ground
India’s beauty salon market was valued at roughly USD 10.8–11.65 billion (~INR 1.05 lakh crore) in 2024 and is projected to nearly double by 2033, supported by rising incomes, urbanisation and premiumisation. Industry trackers add that the premium salon segment has been growing in double digits, with organised chains deepening presence in Tier-II and Tier-III cities.
Naturals’ expansion comes amid intensifying competition from established chains and beauty platforms that are adding stores and services to capture offline demand. The chain’s scale puts it ahead of several peers in the fragmented services market, which still has a large unorganised base.
While Naturals has not disclosed valuation expectations, any transaction will likely hinge on control, growth cadence and synergy with Reliance’s broader beauty strategy. For Naturals IPO pathway, investors will watch store economics, franchise health, service mix, and the trajectory of GMV translating into revenues and profitability. Industry data suggest the category’s momentum remains supportive, but execution on standardisation, talent and compliance will be key swing factors for organised operators.
Kumaravel’s comments signal Naturals’ dual-track approach: continue negotiations with a strategic buyer while keeping optionality for capital markets. Either route, he suggested, would fund cluster-led expansion and new service lines that aim to lift throughput and brand stickiness.
Naturals IPO Highlights
- The proposed Naturals IPO by 2028 if Reliance deal doesn’t close, co-founder C.K. Kumaravel said.
- Talks slowed over structure; Reliance sought 51%, Naturals was open to 49%.
- Network: ~900 outlets; plan to add ~100 in 2026.
- FY25 GMV: ~INR 450 crore; FY26 target: ~INR 600 crore.
- Reliance building beauty ecosystem via Tira; exploring 2028 listing for retail arm, according to some reports.
Conclusion
Naturals has kept its options open: progress a strategic tie-up with Reliance that can accelerate scale in a consolidating market, or head for public markets by 2028 to fund growth independently. With the organised salon category expanding steadily and beauty spending rising, investors will focus on the brand’s ability to convert GMV into durable margins while navigating control and capital structure choices over the next 24–36 months.
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