Designer label Sabyasachi sells 51% stake to Aditya Birla Fashion for Rs 398 crore

Aditya Birla Fashion and Retail Limited (ABFRL), Mumbai based retailer on Wednesday acquired 51% stake in Indian luxury designer label Sabyasachi, a brand owned by Sabyasachi Mukherjee. According to the reports, Aditya Birla will infuse Rs 398 crore in the label run by Sabyasachi Couture.

This is the third investment by ABFRL (part of Aditya Birla Group) since 2019. Earlier they had announced a partnership with designer Shantanu and Nikhil and later with Jaypore. Talking about the deal with Sabyasachi, Ashish Dikshit, MD ABFRL said that ethnic wear will be an "important category" in the next few years as people are exploring their culture and heritage.

Dikshit says Sabyasachi has set new benchmarks when it comes to 'design and craftsmanship' and has managed to 'captivate the imagination of the sophisticated global Indian consumer'. Sabyasachi also commented on the partnership and said that he was 'honoured and excited' to have found the 'right partner' in Mr. Kumar Mangalam Birla and ABFRL. He believes with this partnership they will grow a 'truly global luxury brand out of India'.

Incorporated in 1990, Sabyasachi Couture had a revenue of Rs. 274 crore in FY 2020. In FY 2019, they did revenue of 253 crore. Sabyasachi sells apparel, accessories and jewellery and has stores not just in India but also in the US, UK, and the Middle East.

The reports suggest that the acquisition is subject to necessary statutory approvals and signing of definitive agreements which will happen in a few months.

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