Indian apparel manufacturing and retail giant Aditya Birla Fashion and Retail Ltd (ABFRL) has joined hands with famous fashion designer Tarun Tahiliani for luxury couture and ethnic menswear.
Under the partnership, both organisations will jointly set up a new entity which will retail contemporary ethnicwear and accessories for men under a new brand.
Just last month, ABFRL had signed a definitive agreement to acquire a 51 per cent stake in designer label Sabyasachi, for an estimated Rs. 398 crore.
ABFRL will have major share (80 per cent) in the venture, while rest will be with Tarun. This new venture will strengthen ABFRL’s position in the ethnicwear segment.
The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.
The company plans to operate 250 stores over the next five years for the men’s ethnicwear brand, targeting sales of Rs. 500 crore. It will open the first set of retail stores by September 2021.
Ashish Dikshit, MD, ABFRL said, “Over the next few years, ethnicwear is going to be an important category. Tarun Tahiliani has been at the forefront of the emergence of the Indian design industry and we are proud to partner with him to launch a brand that gives the emerging Indian consumer a new range of celebration wear at more accessible prices.”
As part of the partnership, ABFRL will also acquire 33.5 per cent stake in Tarun’s luxury couture business Goodview Properties for about Rs. 67 crore, with an option to increase it to 51 per cent later.
It is also pertinent to mention here that in June 2019, ABFRL had acquired ethnic apparel and lifestyle retailer Jaypore for Rs. 110 crore. Later in July 2019, it announced a partnership with Shantanu & Nikhil.