Indian conglomerate Aditya Birla Fashion announced on Friday its plans to set up a new unit for foraying into a Direct to Consumer (D2C) business. The company said through this venture it plans to build a portfolio of new-age, digital brands across categories such as fashion, beauty and other allied lifestyle segments. The company will also be looking in to acquire “promising and scalable” D2C brands in future. Shares were trading 2.86% lower at Rs 295.45 a scrip.
The fashion retail company plans to initially fund this venture through its own internal accruals but will keep the option to bring in external capital for future. It did not disclose the amount it plans to invest in the D2C business.
Earlier in January, Aditya Birla Fashion said it will acquire a 51 per % stake in designer Masaba Gupta’s House of Masaba label for Rs 90 crore and will scale predominantly through the D2C channel. Foray into D2C business comes at a time when established firms are making a faster adoption into digital building their e-commerce presence and positioning themselves through other D2C channels as well.
“At ABFRL, we want to build the next set of iconic brands in the digital space as we evolve with our changing consumers. Leveraging our core capabilities around design, product creation, sourcing and brand building that have enabled us to create some of India’s most loved fashion brands in the offline space, we now wish to craft a blockbuster portfolio in the digital space as well,” Ashish Dikshit, Managing Director at Aditya Birla Fashion and Retail Limited said in the statement.
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