Aditya Birla Fashion To Acquire 51% In Sabyasachi Couture
Aditya Birla Fashion and Retail Ltd. will acquire 51% stake in luxury designer brand-Sabyasachi Couture for Rs 398 crore.
The all-cash deal and is expected to be completed in 30-45 days and is subject to statutory approvals and signing of definitive agreements, the company said in an exchange filing.
The luxury brand which not only sells apparel, but also accessories and jewellery has stores in India, the U.S., the U.K. and the Middle East.
Aditya Birla Fashion expects the partnership to add weight to its growing ethnic wear portfolio and will accelerate the company’s strategy to capture a large share of the ethnic wear market through its portfolio of brands, across consumer segments, usage occasions and geographies, the company said in the filling.
Sabyasachi Couture Revenue:
- FY18: Rs 209 crore
- FY19: Rs 253 crore
- FY20: Rs 274 crore
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.
“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," Ashish Dikshit, managing director at Aditya Birla Fashion, said in the release. "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.”
Over the next few years, the company intends to create a portfolio that addresses the entire gamut of ethnic wear segments: value, premium and luxury.