Aditya Birla Fashion and Retail Ltd(ABFRL) is launching a new venture in partnership with fashion designer Tarun Tahiliani. The new firm will focus on men’s ethnic wear. ABFRL has also acquired a 33.5% stake in the existing business of Tarun Tahiliani.
ABFRL-Tarun Tahiliani New Venture Details
As per the details shared by ABFRL in the regulatory filing, the new brand will focus on premium occasion wear and will bring high-quality apparel for men. The brand will try to bring these apparel at an affordable price.
As per the agreement, ABFRL will hold an 80% stake in the new brand, whereas Tarun Tahiliani will take a 20% stake.
In the next 5 years, they have a plan to make this brand business Rs 500 crore. The company also plans to open around 250+ stores nationwide in the coming 5 years. The brand will be formally launched in September 2021.
On the other hand, ABFRL will also control the 33.5% stake of the existing luxury brand of Tarun Tahiliani with Rs 67 crore. ABFRL will slowly increase the 33.5% stake to 51% in few years. Wazir Advisors helped Tarun to seal this strategic deal.
How Current Partnership will Help ABFRL?
ABFRL Managing Director Ashish Dikshit said:
“Over the next few years, ethnic wear is going to be an important category as confident Indians rediscover their culture and heritage. Tarun Tahiliani has been at the forefront of the emergence of the Indian design industry… The ethnic wear segment is a large and growing market with a significant opportunity to build scale.”
He further added that Tarun Tahiliani’s fashion expertise will bring a positive change with ABFRL.this partnership will make a positive impact in the ethnic wear sector. Existing couture brands will also see immense growth in the future. The luxury segment’s continuous growth will help the company to grow further.
ABFRL is on a buying spree for the last few months. In January, it acquired a majority stake in the Sabyasachi brand. ABFRL signed this deal to strengthen the position in the fast-growing apparel market. The company wants to invest more in the Luxury sector.
ABFRL has completed all the formalities related to the Sabyasachi deal. The company wants to invest Rs 398 crore in the Sabyasachi brand for fast growth.
ABFRL has a strong network of more than 3157 stores. Last year, Flipkart acquired 7.8 percent of ABFRL’s stake in exchange for Rs 1500 crore.