Leading fashion company Aditya Birla Fashion and Retail Ltd. (ABFRL) announced on Wednesday that it has got into a strategic partnership with designer brand Sabyasachi Couture. Additionally, the company has signed an agreement to acquire 51 percent stake in Sabyasachi brand.
According to media reports, the ANFRL will be acquiring stake in the luxury brand for Rs 398 crore in an all-cash deal. EY, PwC, and Shardul Amarchand Mangaldas and Co. were the transaction advisors for Sabyasachi, while KPMG, Khaitan and Co. and Transaction Square LLP advised ABFRL.
Founder and CEO Sabyasachi Mukherjee said in a press statement:
“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.”
Established in 1999, Sabyasachi has evolved as India’s largest and most influential luxury designer brand with Indian roots and global appeal. The brand offers apparel, accessories, and jewellery. It has a strong franchise in India, the US, the UK, and the Middle East.
“Aligned in our vision and commitment to excellence, we will work together to grow a truly global luxury brand out of India,” Sabyasachi added.
The partnership is aligned with ABFRL’s strategy to capture a large share of the ethnic wear market through a comprehensive and attractive portfolio of brands. According to a statement issued by ABFRL, the company plans to build a large ethnic business over the next few years to complement its portfolio in the western wear segment.
Ashish Dikshit, Managing Director at ABFRL, said, “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…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.”