Rewrites with background on Reliance Retail in paragraphs 2-4, 9, sector context in paragraph 8

July 18 (Reuters) - Reliance Industries RELI.NS said on Friday its retail arm has bought the Kelvinator brand in India from Sweden's Electrolux ELUXb.ST, as the Mukesh Ambani-led group deepens its presence in the fast-growing consumer durables market.

Reliance Retail has been expanding its private-label portfolio and growing its footprint in home electronics and appliances, a segment boosted by rising incomes, urbanisation, and mounting competition.

It also operates the Reliance Digital stores, which sell everything from smartphones and laptops to washing machines and refrigerators.

The company has been selling Kelvinator-branded refrigerators, air conditioners and washing machines since 2019 under a licensing pact with Electrolux, primarily through smaller appliance retailers in general trade.

Kelvinator rose to prominence in the 1970s and 80s in India as its refrigerators, marketed under the tagline "the coolest one," became a symbol of aspirational living for the country's middle class.

However, the brand lost ground after liberalisation in the 1990s, when global competitors flooded the market and consumer preferences began to shift.

While the companies did not disclose financial details of the deal, Electrolux said in its quarterly earnings update on Friday that it booked a gain of 180 million Swedish crowns ($18.5 million) from the divestment of the brand.

As of June 2024, India's consumer goods market was the fastest-growing among major economies and could nearly double to 3 trillion rupees ($34.8 billion) by 2029, according to an EY report.

Reuters reported earlier this month that Reliance Retail is unlikely to launch an initial public offering before 2027 or 2028. In November, sources told the news agency that the company plans to resolve operational challenges before going public.

($1 = 9.7064 Swedish crowns)

($1 = 86.1800 Indian rupees)

(Reporting by Nandan Mandayam and Manvi Pant; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

((Manvi.Pant@thomsonreuters.com; +918447554364;))