Aditya Birla Fashion and Retail Limited(ABFRL) is one of the known brands in the Retail and fashion industry. To strengthen its portfolio further, ABFRL has acquired a 51% stake in the known ethnic brand Sabyasachi.
Details about the Current Deal between ABFRL and Sabyasachi
ABFRL under its strategic move has signed a deal to acquire a majority stake in Sabyasachi. The cost of acquisition is approximately Rs 398 crore. The final adjustment of the amount will be done at the time of closing the deal.
It is a complete cash deal. Final paperwork related to the deal will be over in one and a half months. Through the current deal, ABFRL is filling the gap of luxury and ethnic wear in the company portfolio. The company will provide more luxury apparel, jewelry, and accessories.
The company spokesperson said that through the current acquisition, ABFRL will establish itself in the fastest growing apparel market. The company is also having a long term goal to establish itself in the ethnic wear segment. ABFRL also acquired a 51% stake in Finesse International last year.
ABFRL is India’s largest fashion network with 2750+ ABFRL outlets in more than 750 cities, approximately 30+ million customers, with annual revenue of Rs 8743 crores in FY2020.
Sabyasachi brand was founded in 1990. It is the main attraction in most of the big fat marriages in India. Celebrities and businessmen flaunt the Sabyasachi brand in most marriages and big functions.
Sabyasachi and ABFRL point of view About Deal
Commenting on the partnership, Ashish Dikshit, Managing Director, ABFRL said: “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.”
Ashish further said that ABFRL expects that ethnic wear is going to be more popular in the coming years. The young generation will focus more on cultural and heritage values. To strengthen its online presence, ABFRL sold its 7.8% stake to online giant FlipKart in October 2020.
“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.” Ashish further added.
Sabyasachi Mukherjee, Founder and CEO of the Sabyasachi brand, is also quite excited about the current deal. He said that I feel honored and delighted with the current partnership. Like our brand, Kumar Mangalam Birla and ABFRL are also committed to quality. Sabyasachi and ABFRL will work together to create a luxury brand that will be known globally.
Other than India, Sabyasachi has its franchise in the UK, US, and the Middle East. The fashion brand has a revenue of Rs 274 crore in FY20.