Aditya Birla Fashion and Retail Ltd has announced the acquisition of 51 per cent stake in designer brand Sabyasachi to strengthen its position in the growing apparel market and tap the luxury segment.
Aditya Birla Fashion and Retail Ltd (ABFRL) has signed a definitive agreement for acquiring 51 per cent stake in the Sabyasachi brand and said it will infuse Rs 398 crore, which will be subject to closing adjustments.
The Aditya Birla group firm expects to complete the acquisition in 30 to 45 days.
"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," Aditya Birla Fashion and Retail Ltd (ABFRL) Managing Director Ashish Dikshit said.
Over the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnic wear segments: value, premium and luxury, he added.
The Sabyasachi brand operates in categories such as apparel, accessories and jewellery and besides the domestic market, it has a franchise base in foreign markets such as the US, the UK and the Middle East. It had a revenue of Rs 274 crore in FY 2019-20.
"Over the course of the last couple of years, as my brand evolved and matured, I began searching for the right partner in order to ensure continuity and long-term sustainable growth... Aligned in our vision, and committed to excellence, we will work together to grow a truly global luxury brand out of India," Sabyasachi Brand CEO and Founder Sabyasachi Mukherjee said.
ABFRL expects to build a large ethnic wear business over the next few years to complement its strong and diverse portfolio in western wear segment of the Indian apparel market.
"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 Aditya Birla Group firm said.
ABFRL had a revenue of Rs 8,788 crore in FY19-20 and has a network of 3,025 stores, approximately 26,000 multi-brand outlets with over 6,500 point of sales in department stores across India.
It has a repertoire of market leading brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England besides its value-retail brand Pantaloons.