Aditya Birla Fashion Acquires 51% Stake in Designer Clothing Brand Masaba | New Companies
New Delhi: Aditya Birla Fashion and Retail Ltd (ABFRL) announced on Friday that it would acquire a 51% majority stake in popular and contemporary brand ‘Masaba’ promoted by renowned designer Masaba Gupta for a cash consideration of Rs 90 crore .
Aditya Birla Group has reached a ‘binding terms’ agreement to acquire a 51% stake in ‘House of Masaba Lifestyle Pvt Ltd’, a move that will strengthen its role in fashion for young consumers and digital natives.
It will also help ABFRL to foray into the branded beauty and personal care segment, which offers huge opportunities to build distinctive and scalable local brands.
The ABFRL plans to grow the Masaba brand through direct-to-consumer (D2C) channels in the segment, which is growing rapidly thanks to an increase in the number of female shoppers, an increase in disposable income and an acceleration in the market. digital influence.
“The Masaba brand will be developed primarily through the direct-to-consumer (D2C) digital channel, leveraging its strong connection with younger, digitally-influenced consumers,” according to a joint statement.
The brand will cover all lifestyle offerings ranging from clothing, accessories, beauty products and other lifestyle products.
“The brand is aiming to achieve annual revenue of around Rs 500 crore over the next five years,” he said.
House of Masaba Lifestyle (HML) was incorporated in 2014.
Its revenue in COVID-19 impacted FY22, excluding its beauty business, and was estimated at Rs 30 crore, ABFRL said in the stock market update. on the agreement.
Aditya Birla Group expects the deal to close in 60-90 days. However, this will be subject to the execution of definitive agreements, satisfaction of closing conditions and statutory approvals.
ABFRL Managing Director Ashish Dikshit said, “This partnership is also an important step in building a presence in the fast-growing beauty and personal care segment. This fits well with our overall strategy of partnering with top Indian designers to build a portfolio. of distinctive and ambitious local brands in the fashion and lifestyle categories. »
House of Masaba Founder Masaba Gupta said, “The House of Masaba has already established a strong foothold among young people through a strong digital strategy and the combination with ABRFL will strengthen this position, making the brand ready for the future. ‘to come up.
Gupta added that with this partnership, she looks forward to creating immersive and collaborative experiences for the company’s target audiences who are heavily engaging with virtual media today and are driving the evolution from industry to the metaverse.
ABFRL is expanding its game after acquiring fashion companies and brands.
In February last year, she teamed up with fashion designer Tarun Tahiliani and a month before, the ABFRL announced the acquisition of a 51% stake in designer label Sabyasachi. Also Read: Budget to Offer More Fiscal Support to Economy Amid Third Wave Uncertainty: Report
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