Aditya Birla Fashion and Retail Limited (ABFRL) on Wednesday signed a 51 percent stake in Sabyasachi, an Indian luxury designer label. Sabyasachi is the brand of Mumbai-based retailer Sabyasachi Mukherjee
Sabyasachi Couture, a partner in the manufacture, distribution, and sale of designer clothing, jewelry, and accessories under its own brand ‘Sabyasachi’, will invest $ 398 billion at 51% interest on the label. It said in a filing to the stock exchanges.
In 1990 ‘Sabyasachi Couture’ was incorporated. In 2020 it had a revenue of $ 2.74 billion.
ABFRL said the Sabyasachi brand has strong Indian roots and global appeal. It enjoys a strong franchise in India, the US, UK, and West Asia. The report says the ABFRL platform will help brand Sabyasachi move from India to a global luxury home.
Indian ethnic clothing brand Sabyasachi will be ABFRL’ s third investment from mid-2019. In July 2019, the company announced its partnership with leading fashion designers Shantanu and Nikhil by acquiring a 51% stake in Finesse International Design Pvt. Ltd. is a company that manufactures bespoke apparel for men and women under the brand name Shantanu & Nikhil.
In June 2019, Jaipur, an ethnic clothing and lifestyle retailer, acquired ABFRL, a retailer of brands such as Louis Philippe, Van Heusen, Alan Solly, and Peter England, for Rs 110 crore. The deal was made to help ABFRL tap into the fast-growing ethnic clothing market.
Sabyasachi’s stake will add weight to ABFRL’s growing ethnic clothing portfolio. ABFRL said it will accelerate the company’s strategy to capture a large share of the ethnic apparel market through a comprehensive and attractive portfolio of brands across key customer segments, usage opportunities, and geographies.
ABFRL expects to build a large ethnic clothing business in the next few years to complete a strong and diversified portfolio in the Western apparel segment of the Indian apparel market.
The company believes that ethnic clothing will become a more important category in the next few years as young and confident Indians rediscover their culture and heritage. By excelling in design and craftsmanship, the Sabyasachi brand has set new standards and captured the imagination of the cutting-edge global Indian consumer …In the next few years, ABFRL intends to create a portfolio that addresses the value, premium, and luxury of the ethnic clothing segment,” said Ashish Dixit, Managing Director, ABFRL.
ABFRL is part of the Aditya Birla Group. It has a chain of 3,025 stores and a clean Play Fashion House worth Rs 8,788 crore in the current financial year 20-20.