The Aditya Birla Group is positioning itself to capitalise on the rapid evolution of India’s fashion industry through its two distinct entities — Aditya Birla Fashion and Retail Ltd (ABFRL) and Aditya Birla Lifestyle Brands Ltd (ABLBL). Chairperson Kumar Mangalam Birla, in his address to shareholders in ABFRL’s annual report, said the group’s “dual growth engines” will enable it to capture emerging opportunities and provide a competitive edge across critical segments of the Indian fashion market.
Birla noted that India’s per capita GDP is projected to grow from US $ 2,500 to over US $ 4,000 in the next five years, ushering in a phase of aspirational consumption. He observed that this shift would drive demand across all fashion categories, accelerate the transition from unorganised to organised retail, and spur the creation of new brands. With India’s expanding middle class, dynamic economic growth, and changing consumer behaviour, Birla expressed confidence in the sector’s long-term potential.
The group completed the demerger of ABLBL from ABFRL in June 2025, creating two entities with distinct focus areas. ABLBL operates premium lifestyle brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, and American Eagle. ABFRL houses retail businesses like Pantaloons, digital-first brands under TMRW, and ethnic labels including Sabyasachi, Shantnu & Nikhil, House of Masaba, Tarun Tahiliani, Jaypore, Tasva, and TCNS.
Following the demerger, ABFRL raised US $ 490 million through Qualified Institutional Placement and preferential issuance, providing significant capital infusion and strengthening its balance sheet. Birla said this would allow the company to pursue organic growth and sustainable profitability.
Over the next five years, ABLBL aims to deliver double-digit growth in revenue and EBITDA, with more than 250 new stores planned for FY ’26 through a balanced mix of franchise and company-owned outlets. For ABFRL, the focus will be on improving profitability at Pantaloons, with plans to add 20–25 stores annually, each expected to achieve profitability in its first year. Its value brand Style Up is set for accelerated expansion, targeting 200+ stores by FY ’28.
The report added that India’s apparel industry recorded a moderate recovery in FY ’25, reaching Rs. 9.3 lakh crore (US $ 105 billion), and is projected to surpass Rs. 14 lakh crore (US $ 158 billion) by FY ’30. Growth will be fuelled by rising disposable incomes, brand consciousness, urbanisation, and technological innovations such as AI-driven recommendations and virtual try-ons.
