ADITYA BIRLA GROUP TO SHUT DOWN E-COM­MERCE VEN­TURE ABOF.COM

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Aditya Birla Group will shut down its on­line shop­ping por­tal Abof.com by the end of this year, weighed down by in­tense com­pe­ti­tion from the sec­tor giants Ama­zon and Flipkart. Launched in Oc­to­ber 2015, Abof. com has port­fo­lio across cloth­ing, footwear and ac­ces­sories be­sides a col­lec­tion of the group’s own brands like Allen Solly and Peter Eng­land, among oth­ers. “There are var­i­ous rea­sons for the clo­sure. First, the sec­tor is not ma­tur­ing to the level it was ex­pected, and se­condly, the re­turn on in­vest­ment is long drawn af­fair and to con­tinue putting money into the re­sources is not a very in­tel­li­gent idea,” Santrupt Misra, HR Di­rec­tor, Aditya Birla Group, told PTI.

Other fac­tors,

Misra said, was deep dis­count­ing and sell­ing prod­ucts be­low the cost, which does not add value to the busi­ness. Cur­rently, there are about 240 em­ploy­ees work­ing with Abof.com.

When asked about the fu­ture of the em­ploy­ees, Misra was quoted by PTI as say­ing: “We will try and in­cor­po­rate them in the group’s other busi­ness as much as it would be pos­si­ble and they will be kept in the pay­roll for four and-a-half months. “Giv­ing them salaries and re­leas­ing is the eas­i­est thing to do but we don’t want to do that in first place,” he told PTI, adding that those who want to stay in the e-com­merce space would be helped fur­ther in find­ing a new job with the ex­ist­ing play­ers. With­out spec­i­fy­ing a par­tic­u­lar date, Misra said the process of wind­ing up has tech­ni­cally started and it would take about 4-5 months for the en­tire process.

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