Aditya Birla Fashion ties up with Sabyasachi brand to tap luxury and bridge to luxury segments across all categories

After signing a definitive agreement for acquiring 51 per cent stake in the Sabyasachi brand, retail and fashion company Aditya Birla Fashion (ABFRL) has established a strategic partnership with the designer brand of Kolkata, the company said in a regulatory filing.

The cost of the acquisition at which the shares will be acquired will be approximately Rs.398 crore, subject to closing adjustments.

“Through Sabyasachi brand, ABFRL will be able to tap luxury and bridge to luxury segments across all categories such as apparel, jewellery and accessories," the company said in a regulatory statement. The indicative time period for completion of the acquisition is 30-45 days.

“Through this investment, ABFRL will strengthen its position in the largest and amongst the fastest growing apparel segment in line with its stated long term strategy of building a formidable play in ethnic wear segment," it further added.

On the partnership, an excited Sabyasachi Mukherjee, CEO and Founder Sabyasachi Brand said. "I am honoured and excited to have found that partner in Kumar Mangalam Birla and ABFRL. Aligned in our vision and committed to excellence, we will work together to grow a truly global luxury brand out of India.”

Commenting on the partnership, Ashish Dikshit, Managing Director, ABFRL said, “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."

Sabyasachi brand was incorporated in the year 1990 and it is engaged in designer apparel, jewellery and accessory for men and women. The brand has a franchise in India, US, UK and the Middle East.