by Apparel Resources News-Desk
16-July-2019 | 2 mins read
Aditya Birla Fashion and Retail Ltd (ABFRL) said it will acquire a 51 percent stake in Finesse International Design Pvt. Ltd. that retails the bespoke couture by Indian fashion designers duo Shantanu & Nikhil.
Finesse International Design Pvt. Ltd. is primarily engaged in the business of bespoke occasion and ceremonial contemporary apparels for men and women under the eponymous label of the designers.
“The ABFRL acquisition committee of the board of directors of Aditya Birla Fashion and Retail Ltd… approved acquisition of 51 percent equity stake of Finesse through combination of primary equity infusion and secondary share purchase by way of signing of share subscription and purchase agreement and shareholders’ agreement with Finesse and its shareholders,” ABFRL said in a regulatory filing.
ABFRL has clarified that the cost of acquisition subject to closing adjustments is Rs. 60 crore including the subscription amount to be infused in Finesse.
“Indian ethnicwear is a large segment in 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.
Indianwear, which was initially largely restricted to the older age segment, is now finding gaining acceptance among younger consumers as well, with players such as Manyavar and FabIndia driving the market especially at the mass-premium end while designer labels cater to the upmarket high-end segment.
Last month, ABFRL acquired Jaypore.com, another Indianwear e-tailer, for Rs. 110 crore as the group entered a largely unorganised market of traditional and ethnic products.
The company said completion of proposed acquisition is subject to necessary approvals and customary closing conditions.
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