ABFRL’s partnership with Tarun Tahiliani boosts company’s shares
Aditya Birla Fashion and Retail’s (ABFRL) recent partnership with designer Tarun Tahiliani, and Tahiliani’s launch of a new men’s ethnic wear brand led to a 9 per cent rise in the company’s shares.
As per a Live Mint report, over the next five years, the new brand aims to build Rs500 crore business. ABFRL and will hold 80 per cent share in the new entity while Tahiliani will hold the remaining 20 per cent.
ABFRL will also acquire a 33 per cent stake in Tahiliani’s existing luxury couture business, with the option to increase it to 51 per cent in the next few years. These acquisitions indicate ABFRL’s growing emphasis on the ethnic wear segment. In January, the company acquired 51 per cent stake in the Sabyasachi brand. Earlier, it also made investments in Jaypore and Shantanu & Nikhil (S&N).
Meanwhile, despite appreciation in ABFRL’s shares last week, its stock is still about 34 per cent lower than the pre-COVID highs seen in February last year. Retailers have faced demand issues since the pandemic began and plan to monitor demand in the coming days.
