Designer Sabyasachi Mukherjee. (Image: Twitter @SabyaOfficial)
Aditya Birla Fashion and Retail Ltd (ABFRL) has entered a strategic partnership with India’s largest designer brand Sabyasachi by signing a definitive agreement for acquiring 51 percent stake in the brand, the leading fashion company announced on January 27.
Sabyasachi had FY20 revenues of Rs 274 crore and ABFRL paid Rs 398 crore for the stake purchase.
In a disclosure to the exchanges, the Aditya Birla group firm said, “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 and 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,” it added.
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.
"...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: “I am honoured and excited to have found that partner in 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.