Aditya Birla Fashion and Retail Ltd (ABFRL) is acquiring a 51 per cent stake in India’s leading designer brand Sabyasachi for Rs 398 crore in cash
In a regulatory filing after market hours, ABFRL announced a framework agreement with ‘Sabyasachi Couture’, which will give it a 51 per cent stake in the Calcutta-based Sabyasachi brand.
The Birla group firm now has brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England under its fold.
ABFRL has set its sights on emerging as a formidable player in the ethnic wear segment and in 2019 it had acquired Jaypore for Rs 110 crore. It had also bought a majority stake in Finesse International Design Pvt Ltd, a company engaged in the business of bespoke contemporary apparel for men and women under brand Shantanu & Nikhil.
The company said in a statement that while Sabyasachi is India’s largest and most influential luxury designer brand with strong Indian roots and global appeal, the ABFRL platform will complement the brand on its journey to becoming a global luxury house out of India.
“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 and attractive portfolio of brands, across key consumer segments, occasions and geographies. The company expects to build a large ethnic wear business over the next few years to complement its strong and diverse portfolio in the western wear segment of the Indian apparel market,’’ ABFRL added.
The Sabyasachi brand straddles categories such as apparel, accessories and jewellery and has a strong franchise in India, the US, the UK and West Asia.
“Over the next few years, ethnic wear is going to be an important category as young Indians rediscover their culture and heritage. The Sabyasachi brand, through its emphasis on excellence in design and craftsmanship, has set new benchmarks and captivated the imagination of the global Indian consumer. We are proud to partner Sabyasachi in its journey to become the only global luxury brand from India,” Ashish Dikshit, managing director, ABFRL, said.