The Business Bytes
TBB BUREAU
MUMBAI, JANUARY 28, 2021
India’s leading fashion company, Aditya Birla Fashion and Retail Limited (ABFRL) has announced a strategic partnership with India’s largest designer brand Sabyasachi by signing a definitive agreement for acquiring 51 percent stake in Sabyasachi brand.
Sabyasachi is India’s largest and most influential luxury designer brand with strong Indian roots and global appeal. The brand straddles categories such as apparel, accessories and jewellery and has a strong franchise in India, US, UK and the Middle East. The ABFRL platform will complement brand Sabyasachi 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 & attractive portfolio of brands, across key consumer segments, usage occasions and geographies. The company expects to build a large ethnic wear business over next few years to complement its strong and diverse portfolio in western wear segment of the Indian apparel market.
Commenting on the partnership with ace designer Sabyasachi, Ashish Dikshit, Managing Director, ABFRL said: “We believe that over the next few years, ethnic wear is going to be an increasingly important category as young and confident 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 sophisticated global Indian consumer. 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.”
Sabyasachi Mukherjee, CEO and Founder, Sabyasachi Brand, said: “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. I am honoured and excited to have found that partner in Mr. Kumar Mangalam Birla and ABFRL. Aligned in our vision, and committed to excellence, we will work together to grow a truly global luxury brand out of India.”
The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.
EY, PWC and Shardul Amarchand Mangaldas & Co were the transaction advisors for Sabyasachi; ABFRL was advised by KPMG, Khaitan&Co and Transaction Square LLP.
