ABFRL partners with Tahiliani’s label to launch ethnic menswear

Under the partnership, ABFRL and Tahiliani will jointly set up a new entity which will retail contemporary ethnic wear and accessories for men under a new brand. ABFRL will hold 80% in the venture and Tahiliani 20%. ABFRL said the partnership will strengthen its position in the ethnic wear segment.

The new entity will open the first set of retail stores by September. The company plans to operate 250 stores over the next five years for the men’s ethnic wear brand, targeting sales of ₹500 crore.

As part of the partnership, ABFRL will also acquire 33.5% stake in Tahiliani’s luxury couture business Goodview Properties Pvt. Ltd for about ₹67 crore, with an option to increase it to 51% later. ABFRL has been increasing its exposure to premium Indian designer labels over the last two years with several investments.

In January, ABFRL signed a definitive agreement to acquire a 51% stake in luxury designer label Sabyasachi, a brand owned by designer Sabyasachi Mukherjee, for an estimated ₹398 crore. These investments give the retailer of men’s formal wear and fast-fashion brands access to the occasion wear market, with a sharp focus on ethnic clothing.

In June 2019, ABFRL had acquired ethnic apparel and lifestyle retailer Jaypore for ₹110 crore. The deal was intended to help it tap the fast-growing ethnic apparel market. In July 2019, the firm announced a partnership with Shantanu & Nikhil.

“Over the next few years, ethnic wear is going to be an important category. Tarun Tahiliani has been at the forefront of the emergence of the Indian design industry and we are proud to partner with him to launch a brand that gives the emerging Indian consumer a new range of celebration wear at more accessible prices," Ashish Dikshit, managing director, ABFRL said in a statement