Aditya Birla Fashion acquires 51 percent stake in designer label Shantanu & Nikhil

By

Maverick Martins

Published
Jul 16, 2019

Aditya Birla Fashion and Retail Limited (ABFRL) has acquired 51 percent stake in Finesse International Design which runs apparel retail brand Shantanu & Nikhil for Rs 60 crore ($8.8 million). The acquisition was done through a combination of primary equity infusion and secondary share purchase.
 

The acquisition is expected to further strengthen ABFRL’s presence in the Indian ethnic wear market. This is the company’s second major acquisition in the ethnic wear segment. Last month, ABFRL had acquired ethnic e-commerce player Jaypore for Rs 110 crore.
 
"Indian ethnic wear is a large segment in the Indian fashion market and we have identified it as an important growth opportunity for ABFRL. This partnership will further deepen our presence in this important and fast-growing segment and strengthen our leadership position in the overall branded apparel market," ABFRL managing director Ashish Dikshit said in a statement.

Established in 2007, Finesse runs five stores selling ethnic apparel, footwear and accessories, with annual sales of Rs 35 crore. ABFRL currently has a network of over 2,700 stores for brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England.
 
The company said that the completion of the proposed acquisition is subject to necessary approvals and customary closing conditions.