Aditya Birla Fashion acquires 51% of SABYASACHI equities

Aditya Birla Fashion and Retail Ltd completed its acquisition of a 51% stake in the designer brand Sabyasachi in order to strengthen its role in the rising apparel market and tap into the luxury segment. Aditya Birla Fashion and Retail Limited (ABFRL) recently signed a final agreement to buy a 51% stake in the Sabyasachi designer brand for Rs 398 crore. The agreement is anticipated to be finished in late-February or mid-March, the company said in a regulatory request. Established in 1990, the Sabyasachi brand operates in categories such as apparel, footwear, and jewelry and has a strong franchise in India, the United States, the United Kingdom, and the Mid East, with annual revenues of Rs 274 crore. ABFRL said that this collaboration would bring considerable weight to ABFRL’s rising portfolio of ethnic wear. This would accelerate the company’s plan to gain a significant share of the ethnic wear market across a diverse and compelling range of products across main customer categories, consumption opportunities, and geographies. In the next few years, the company aims to develop a broad ethnic wear market to complement its strong and varied Western wear portfolio. ABFRL has a network of more than 3,000 stores that, among others, sell Louis Philippe, Van Heusen, Allen Solly, and Peter England clothes and accessories. Mukherjee’s prominent clientele includes Deepika Padukone, Nita Ambani, and Oprah Winfrey, and its products are on average sold for Rs 2 lakh. ABFRL’s purchase of the Sabyasachi brand is the third acquisition in the genre of ethnic wear since July 2019. (ABFRL has already ventured into branded ethnic wear through investments in ethnic wear brands in Jaypore, Shantanu & Nikhil). ABFRL is ready, by way of the Sabyasachi brand, to pick up the luxury and bridge segments and tackle the full assortment of ethnic wear: value, premium, and luxury.”

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