The Indian retail giant has acquired a 51% stake in the luxury fashion brand Sabyasachi, which produces apparel and accessories and has stores across India, the US, the UK and the Middle East.
Aditya Birla Fashion and Retail has said the acquisition will help the company expand its growing ethnic wear portfolio with the aim of establishing Sabyasachi as a global luxury house beyond India.
The company will infuse Rs.398 crore for 51% interest in the label run by Sabyasachi Couture.
Sabyasachi Couture was incorporated in 1990. In FY20, it had a revenue of Rs. 274 crore.
The Sabyasachi brand has strong Indian roots and global appeal, ABFRL said.
It enjoys a strong franchise in India, the US, the UK and West Asia.
The ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India, it said.
“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,” Founder and CEO Sabyasachi Mukherjee said in a statement. “I am honoured and excited to have found that partner in ABFRL. Aligned in our vision, and committed to excellence, we will work together to grow a truly global luxury brand out of India.”
Sabyasachi will be ABFRL’s third investment in an Indian ethnic wear brand since mid-2019. In July 2019, the company announced a partnership with leading fashion designers Shantanu & Nikhil with the acquisition of a 51% stake in Finesse International Design Pvt. Ltd, their company that makes bespoke apparel for men and women under the brand name Shantanu & Nikhil.
In June 2019, ABFRL—which retails brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England—acquired ethnic apparel and lifestyle retailer Jaypore for ₹110 crore.
The deal was intended to help ABFRL tap the fast-growing ethnic apparel market.
