Aditya Birla Fashion and Retail Limited (ABFRL) has entered into a deal with Delhi based fashion designer Tarun Tahiliani for a 33% stake in his existing business in an all-cash deal for INR 67cr, with the option to becoming majority shareholder at 51% in a few years. Additionally, ABFRL will jointly with Tarun Tahiliani, launch a new men’s wear ethnic brand, with 80:20 share holding. With this tie-up, ABFRL is targetting a INR 500cr company with over 250 stores across India.
ABFRL also acquired a 51% stake in luxury Indian designer brand Sabyasachi for INR 398cr. Earlier in 2019, it had acquired 51% stake in M/s Finesse International Design Private Limited (“Finesse”) under the brand name Shantanu & Nikhil, as well as acquiring ethnic wear brand Jaypore for INR 100cr.
Ashish Dikshit, MD ABFRL is quoted to have said, “The ethnic wear segment is a large and growing market with a significant opportunity to build scale. The combined expertise of Tarun Tahiliani and ABFRL will enable the new brand to make a strong impact in the market. This partnership is in line with our stated strategy to craft a portfolio of brands that address the entire gamut of ethnic wear segments: Value, premium and luxury.”
The Mumbai headquarter ABFRL is an Indian fashion retail company, with a network of 3,157 stores, as on December 31, 2020. ABFRL is part of The Aditya Birla Group. The company’s consolidated net profit stood at Rs 58.44 crore in Q3 FY21 as against net loss of Rs 37.64 crore in Q3 FY20. Consolidated revenue from operations tumbled 19.61% to Rs 2,076.19 crore in Q3 FY21 from Rs 2,582.74 crore in Q3 FY20.