Fashion conglomerate Aditya Birla Fashion and Retail Limited (ABFRL) has announced a strategic partnership with well-known designer brand Sabyasachi by signing a definitive agreement for acquiring 51 per cent stake in Sabyasachi brand.

The ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India.

The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.

EY, PWC and Shardul Amarchand Mangaldas & Co were the transaction advisors for Sabyasachi, while ABFRL was advised by KPMG, Khaitan & Co. and Transaction Square LLP for this deal.

This partnership will add significant weight to ABFRL’s growing ethnicwear portfolio. This will accelerate the company’s strategy to capture a large share of ethnicwear market through a comprehensive & attractive portfolio of brands, across key consumer segments, usage occasions and geographies.

The company expects to build a large ethnicwear business over next few years to complement its strong and diverse portfolio in westernwear segment of the Indian apparel market.

Ashish Dikshit, MD, ABFRL said, “We believe that over the next few years, ethnicwear 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. We are proud to partner Sabyasachi in its journey to become the only global luxury brand from India.”

He further added that we see a ‘Made in India’ global brand like Sabyasachi occupying the pinnacle of our ethnicwear portfolio. Over the next few years, ABFRL intends to craft a portfolio that addresses the entire gamut of ethnicwear segments: value, premium and luxury.

Sabyasachi Mukherjee, CEO and Founder, Sabyasachi Brand, 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.”

With revenue of Rs. 8,788 crore in FY19-20, ABFRL is India’s first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats.

The 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.