Aditya Birla Fashion and Retail (ABFRL) signed a definitive agreement for acquiring 51% stake in India's largest designer brand, Sabyasachi, for about Rs 398 crore.
Sabyasachi is India's largest and most influential luxury designer brand with strong Indian roots and global appeal. The brand straddles categories such as apparel, accessories and jewelry and has a strong franchise in India, US, UK and the Middle East. The ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India.This partnership will add significant weight to ABFRL's growing ethnic wear portfolio. This will accelerate the company's strategy to capture a large share of ethnic wear market through a comprehensive & attractive portfolio of brands, across key consumer segments, usage occasions and geographies. The company expects to build a large ethnic wear business over next few years to complement its strong and diverse portfolio in western wear segment of the Indian apparel market.
The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements. The indicative time period for completion of the acquisition is 30-45 days and the proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.
Commenting on the partnership, Ashish Dikshit, MD of ABFRL said: We believe that over the next few years, ethnic wear is going to be an increasingly important category as young and confident Indians rediscover their culture and heritage. The Sabyasachi brand, through its emphasis on excellence in design and craftsmanship has set new benchmarks and captivated the imagination of the sophisticated global Indian consumer. We are proud to partner Sabyasachi in its journey to become the only global luxury brand from India. We see a 'Made in India' global brand like Sabyasachi occupying the pinnacle of our ethnic wear portfolio. Over the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnic wear segments: value, premium and luxury.
Shares of Aditya Birla Fashion and Retail were trading 2.07% lower at Rs 158.80. ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. It is India's first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats.As on 30th September 2020, The Company has a network of 3,025 stores across approximately 26,000 multi-brand outlets with 6,500+ point of sales in department stores across India.
It reported a consolidated net loss of Rs 186.32 crore in Q2 FY21 as compared to a net loss of Rs 0.84 crore in Q2 FY20. Net sales during the quarter dropped 55.4% YoY to Rs 1028.13 crore.
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