Aditya Birla Fashion - Fortifying D2C Presence With Its First Investments: ICICI Direct

ICICI Direct Report

Aditya Birla Fashion and Retail Ltd. acquires eight digital first (direct-to-consumer) apparel and lifestyle brands across categories such as women western wear, casual wear and kids wear.

The acquisition of the D2C brands (through its wholly subsidiary brand, TMRW) is Aditya Birla Fashion’s initial step towards building a portfolio of new-age, digital brands across categories in fashion, beauty and lifestyle segments.

Majority of the brands are at a very nascent stage having revenues in the range of Rs 15 -Rs 55 crores. Amongst the eight brands, ‘Bewakoof’ brand has a sizeable revenue of Rs 162 crore as on FY22.

Most of the companies acquired are d at 0.6-1.5 times FY22 market cap/sales. Overall consideration paid is ~ Rs 290 crore.

As per the management, with these eight brands on board, TMRW has achieved a revenue run-rate of Rs 700 plus crore and is on a path to cross an annual revenue rate of Rs 1500 crore in the next 12 months.

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