Aditya Birla group firm Aditya Birla Fashion and Retail has forayed into branded ethnic market with the acquisition of Jaypore E-Commerce Private Limited, which sells ethnic fashion merchandise under its own brand Jaypore.
Jaypore is a home-grown retailer that offers curated collections of handmade, handwoven and handcrafted apparel, jewellery, home textiles and accents, traditional and contemporary art and more from all over India.
"The Board of Directors of Aditya Birla Fashion and Retail Limited (ABFRL) approved the signing of Share Purchase agreement to acquire Jaypore. The business comprises online and offline operations," the company said in a filing to the Bombay Stock Exchange on Monday.
The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements, it said.
Commenting on the development, Ashish Dikshit, Managing Director, ABFRL said, "Ethnic wear is the largest segment in the Indian fashion apparel market. While ABFRL has built a diversified portfolio of brands across different segments, ethnic wear space is currently under-represented in our bouquet of offerings to consumers. The proposed acquisition is, therefore, a great strategic addition to our portfolio and gives us a strong footing in a segment that is growing in double digits."
"Jaypore is a brand with strong equity and with a differentiated offering of products based on Indian crafts. It provides a great platform for us to build a strong presence in the Ethnic segment and in accessories and home segment. This acquisition will further strengthen leadership position of ABFRL in the branded fashion space," he added.
ABFRL, a part of USD 44.3 billion Aditya Birla Group, emerged after the consolidation of the branded apparel businesses of Aditya Birla Group comprising ABNL's Madura Fashion division and ABNL's subsidiaries - Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Fashion and Retail Ltd.
Shares of Aditya Birla Fashion and Retail were currently trading at Rs 219.40, up 0.39 per cent, as compared to the previous close of Rs 218.55. The stock touched an intra-day high and low of Rs 221 and Rs 216.05, respectively.
Edited by Chitranjan Kumar