Aditya Birla Fashion and Retail has taken a controlling stake in designer brand Sabyasachi for Rs 398 cr, adding to its existing portfolio of brands that include Louis Philippe, Van Heusen, Allen Solly and Peter England.
It will buy a 51% stake in the company founded by Sabyasachi Mukherjee in 1999.
“Sabyasachi is India’s largest and most influential luxury designer brand with strong Indian roots and global appeal,” Aditya Birla Fashion & Retail said.
The acquired company had revenue of Rs 274 cr in the year ended March, up from Rs 253 cr in the preceding year, while ABFRL has annual revenue of Rs 8,788 cr.
Sabyasachi has a strong franchise in India, US, UK and the Middle East, and the investment and backing will help the boutique retailer on its journey to becoming a global luxury house out of India, the Indian company said.
Sabyasachi offers apparel, accessories and jewelry.
“This will accelerate the company’s strategy to capture a large share of ethnic wear market through a comprehensive & attractive portfolio of brands, across key consumer segments, usage occasions and geographies.
“The company expects to build a large ethnic wear business over next few years to complement its strong and diverse portfolio in western wear segment of the Indian apparel market,” ABFRL said.
The AB Group company has a network of 3,025 stores across approximately 26,000 multi-brand outlets with 6,500+ point of sales in department stores across India.
Ashish Dikshit, Managing Director, ABFRL said ethnic wear is going to be an increasingly important category as young and confident Indians rediscover their culture and heritage.
“The Sabyasachi brand, through its emphasis on excellence in design and craftsmanship has set new benchmarks and captivated the imagination of the sophisticated global Indian consumer…
“Over the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnic wear segments: value, premium and luxury,” he added.
Sabyasachi Mukherjee, CEO and Founder, said he was on the look out 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 Mr. 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.”