One of India’s largest lifestyle retailers, Aditya Birla Fashion and Retail Limited (ABFRL), will acquire a 51 percent stake in luxury couture brand Sabyasachi.
According to a report in Bloomberg Quint, this partnership will be an all-cash deal and will see ABFRL inject an amount of Rs398 crore in the designer brand. The proposed transaction is expected to be completed within two months, subject to legal approvals and signing of the agreements.
Through this pact with Sabyasachi, ABFRL hopes to add weight to its growing ethnic wear segment.
Aditya Birla Fashion currently has a premium selection of brands – Allen Solly, Van Heusen, Forever 21, Ralph Lauren, Ted Baker and The Collective. The company also recently invested in designer ethnic wear labels Jaypore and Shantanu & Nikhil.
“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,” said Ashish Dikshit, Managing Director, ABFRL in a press release. He added, “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.”
Kolkata-based Sabyasachi Mukherjee founded his eponymous label in 1999 and he has since become one of the leading designers in the space of luxury bridal wear. He has designed lehengas for many influential families of India and abroad, including Shloka Ambani, Priyanka Chopra, Anushka Sharma, Deepika Padukone and Soha Ali Khan.
In addition to apparel, Sabyasachi’s portfolio also includes jewellery. The label currently has stores in India, Middle East, the US, and the UK.
“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 Mr. Kumar Mangalam Birla and ABFRL,” said Sabyasachi Mukherjee in a press release.