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).

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

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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.