Birla firm buys 51% in Sabyasachi brand

Aditya Birla Fashion and Retail (ABFRL) on Wednesday announced a strategic partnership with the country’s largest designer brand, Sabyasachi, by acquiring 51 per cent stake for ~398 crore.

Founded by Sabyasachi Mukherjee, “Sabyasachi” is India’s largest and most influential luxury designer brand with strong Indian roots. For FY20, the company reported ~274 crore in revenue. The brand straddles categories such as apparel, accessories, and jewellery, and has a strong franchise in India, the US, the UK, and West Asia. The ABFRL platform will complement brand Sabyasachi in its journey towards becoming a global luxury house based in India.

Since 1999, Sabyasachi has emerged one of the most influential cultural voices in the country, shaping modern fashion and lifestyle while celebrating artisanal craftsmanship and traditional techniques in each and every product.

This partnership will add substantial weight to ABFRL’S growing ethnic wear portfolio. It will accelerate the company’s strategy to capture a large share of the ethnic wear market through a comprehensive and attractive portfolio of brands across key consumer segments, usage occasions, and geographies. The company expects to build a large ethnic wear business over the next few years to complement its strong and diverse portfolio in the western wear segment of the Indian apparel market.

Ashish Dikshit, MD of ABFRL, said: “We believe that over the next few years, ethnic wear will 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. 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 Mukherjee, CEO and Founder of Sabyasachi, said: “Over the course of the last couple of years, as my brand evolved and matured, I began searching 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 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.”

Aditya Birla Fashion and Retail acuires the stake for ~398 crore. For FY20, Sabyasachi reported ~274 crore in revenue