ABRFL to revitalize TCNS Clothing and TMRW with Rs 500 crore investments
27 May, Mumbai 2025
Aditya Birla Fashion and Retail (ABFRL) plans to revitalize its unprofitable ventures including TCNS Clothing and its direct-to-consumer entity, TMRW with an investment of Rs 500 crore in FY25-26.
Owner of brands such as Pantaloons, Sabyasachi, and The Collective, ABFRL reported net sales of Rs 7,355 crore and a net loss of Rs 624 crore in FY24-25. The company has spun off its lifestyle division, formerly known as Madura Fashion, into a new entity, Aditya Birla Lifestyle Brands (ABLBL), which is anticipated to list on stock exchanges by the end of June.
Ashish Dikshit, Managing Director, Aditya Birla Fashion & Retail, informs, the most significant margin improvements would come from turning around businesses currently operating with negative EBITDA. He specifically cites ethnic wear businesses such as TCNS, Tasva and TMRW as being some of the largest contributor to the company’s losses. These businesses are suppressing the profit margins made by other businesses, he sates. Excluding TMRW, Dikshit expects the group to be EBITDA positive next year.
With over Rs 2,350 crore in gross cash at the consolidated level following recent fundraising, ABFRL intends to pursue aggressive growth, aiming to triple its scale and double its profitability over the next five years. This expansion comes as consumers are currently curbing spending on non-essential items.
According to the Retailers Association of India, the average sales growth of retailers declined to 4 per cent in April from 6 per cent in the preceding month, indicating subdued single-digit growth for over a year.
