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January 28, 2021

Aditya Birla Fashion to buy majority stake in Sabyasachi Couture

Indian fashion retail company Aditya Birla Fashion and Retail Ltd (ABFRL) has reached an agreement to acquire a 51% stake in designer brand Sabyasachi in a deal valued at ₹3.9bn ($54.53m).

Indian fashion retail company Aditya Birla Fashion and Retail Ltd (ABFRL) has reached an agreement to acquire a 51% stake in designer brand Sabyasachi in a deal valued at ₹3.9bn ($54.53m).

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Sabyasachi operates stores in India, the US, the UK and the Middle East, selling apparel, accessories and jewellery.

The all-cash deal is subject to statutory approvals and signing of definitive agreements and is expected to complete in the next 30-45 days.

The deal is part of ABFRL’s strategy to create large ethnic wear business in a few years, which will complement its portfolio in western wear segment.

ABFRL managing director Ashish Dikshit 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.”

In a separate development, private equity firm Samara Capital and e-commerce giant Amazon have invested ₹2.75bn ($37m) into their Indian joint venture Witzig.

Witzig plans to invest the fund on its food and grocery retail chain More.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.