Mumbai (Maharashtra) [India], Feb 24 (ANI): Aditya Birla Fashion and Retail Ltd (ABFRL) on Wednesday announced a strategic partnership with India's ace designer Tarun Tahiliani to form a new entity that will soon launch a contemporary men's ethnic wear brand.
The new brand will operate in premium occasion wear segment and offer a range of high quality, sophisticated celebration wear for men at accessible price points, the company said.
The new brand aims to build a Rs 500 crore business in the next five years with more than 250 stores across the country. The brand will launch the first set of retail stores by September.
ABFRL will hold 80 per cent stake in the new entity while Tahiliani will hold the remaining 20 per cent. As part of the deal, ABFRL will also acquire 33 per cent stake in existing luxury couture business of Tahiliani, with an option to increase it to 51 per cent in the next few years.
"The ethnic wear segment is a large and growing market with a significant opportunity to build scale," said ABFRL Managing Director Ashish Dikshit.
"The combined expertise of Tarun Tahiliani and ABFRL will enable the new brand to make a strong impact in the market. The existing couture brand will continue to benefit from the fast-growing luxury segment of the market," he said in a statement.
Dikshit said the partnership is in line with ABFRL's stated strategy to craft a portfolio of brands that address the entire gamut of ethnic wear segments: value, premium and luxury.
ABFRL is part of leading Indian conglomerate Aditya Birla Group. With revenue of Rs 8,788 crore in FY19-20, it is India's first billion-dollar pure-play fashion powerhouse with a bouquet of leading fashion brands and retail formats.
The company has a network of 3,157 stores across 29,900 multi-brand outlets with 6,835 point of sales in department stores across India. It has a repertoire of market's leading brands like Louis Philippe, Van Heusen, Allen Solly and Peter England established for over 25 years. Pantaloons is one of India's largest value retail brand. (ANI)