Aditya Birla Fashion plunges nearly 6 per cent despite collaborating with Sabyasachi

Aditya Birla Fashion & Retail Limited (ABFRL) informed about its strategic partnership with India’s largest designer brand-Sabyasachi on Wednesday after the market hours.  

ABFRL has signed a definitive agreement for acquiring a 51 per cent stake in Sabyasachi brand.  

Sabyasachi is qualified as India’s largest and the most influential luxury designer brand, having strong Indian roots and global appeal. The brand has a strong footprint via franchises in India, the US, UK, and the Middle East. It operates in categories such as apparel, accessories, and jewellery. ABFRL platform is expected to complement Sabyasachi in its journey to become a global luxury house out of India.  

This partnership will add weightage to ABFRL’s growing ethnic wear portfolio. It will give a boost to the company’s strategy to capture a large share of the ethnic wear market through an attractive portfolio of brands across various consumer segments and geographies. The company aims to build a large ethnic wear business in the coming years in order to complement and diversify its portfolio in the western wear segment of the Indian apparel market.  

Formerly known as Pantaloons Fashion & Retail Ltd, ABFRL is a fashion and lifestyle company engaged in providing branded fashion apparels & accessories along with the retail sale of clothing, footwear, and leather articles in stores.  

Despite this news, the stock of ABFRL was trading at Rs 152.70, down by 5.83 per cent at 2.35 pm on Thursday.