For Rs 398 Crore Aditya Birla Fashion Acquires 51% Stake In Designer Brand Sabyasachi
Sabyasachi Couture was incorporated in 1990. The Sabyasachi brand has strong Indian roots and global appeal. As per recent news Aditya Birla Fashion and Retail Limited (ABFRL) have bought a 51 percent stake in luxury designer brand Sabyasachi for Rs 398 crore in an all-cash deal. The company said in a regulatory filing that this deal is beneficial to ABFRL. In the coming time, the company will try to further increase the business of Ethnic Wear. The deal is expected to be completed in 30-45 days.
ABFRL Managing Director Ashish Dixit said, "We believe that in the coming time, we will see an increase in the wearing of ethnic wear." Because young and Indian are rediscovering their culture and heritage. Dixit further said, the company wants to create a portfolio that will be built keeping in mind the value, premium and luxury in the ethnic wear segment.
Sabyasachi Mukherjee, CEO and founder of Sabyasachi brand said, “Over the years, as my brand has developed and matured, I started looking for a right partner with whom i can grow my company in long term. I consider myself fortunate and very happy to be associated with Kumar Mangalam Birla and ABFRL. We will work together for our goal and work to develop a global luxury brand outside India.
ABFRL has a network of more than 3,000 stores that sell clothes and accessories from Louis Philippe, Van Heusen, Allen Solly and Peter England, among others. Mukherjee’s celebrity clientele includes Deepika Padukone, Nita Ambani and Oprah Winfrey, and his products sell for upwards of Rs 2 lakh on average.
According to a report, the 2020 revenue of the Sabyasachi brand is Rs 270 crore. However, the brand has jewelery, clothing and accessories which are franchised in India, US, UK and Middle East.