Aditya Birla Fashion and Retail Limited (ABFRL) has signed a definitive agreement to buy 51 per cent stake in designer brand Sabyasachi for Rs 398 crore. The deal is expected to be closed in late-February or mid-March, the company said in a regulatory filing.
"Through this investment, ABFRL will strengthen its position in the largest and amongst the fastest growing apparel segments, in line with its stated long-term strategy of building a formidable play in ethnic wear segment. Through Sabyasachi brand, ABFRL will be able to tap luxury and bridge to luxury segments across all categories such as apparel, jewellery and accessories," ABFRL said in the filing.
Meanwhile, the ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India, it further added. The Aditya Birla Group company said that it 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.
"Over the course of the last couple of years, as my brand evolved and matured, I began searching for the right partner in order to ensure continuity and long-term sustainable growth. 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," Sabyasachi Mukherjee, CEO and Founder, Sabyasachi Brand, said.
Incorporated in 1990, Sabyasachi is India's largest luxury designer brand. It has interests in categories such as apparel, accessories and jewellery for both men and women, and is present in India, the US, the UK and the Middle East. The fashion brand reported Rs 274 crore revenue in financial year 2019-20.
Commenting on the acquisition, 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. 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."