Aditya Birla Lifestyle Brands, newly demerged from Aditya Birla Fashion and listed on Indian exchanges this Monday, has announced a bold growth plan supported by a yearly investment of Rs. 300 crore (US $ 35 million). This follows as the company prepares for sustained expansion in India’s dynamic retail sector.
With FY ’25 turnover of Rs. 7,830 crore (US $ 909 million) and a portfolio of traditional brands like Louis Philippe, Allen Solly, Peter England, and Van Heusen, Aditya Birla Lifestyle stands as the largest branded apparel player in India in terms of revenue and store count. Its nascent brands like Reebok, American Eagle, and Van Heusen Innerwear are likely to form a major part of the next growth phase.
Managing Director Ashish Dikshit, also the parent company’s head, said the majority of this annual capital injection would go into increasing the company’s huge store network, followed by a minority portion going towards enhancing internal strengths and IT infrastructure. Dikshit said that their goal is to double revenue as well as retail footprint in five years.
The company at present has 3,253 stores across the country and plans to open 250 to 300 new stores each year. While the strategy focuses on organic growth, Dikshit added that smaller cities and rising consumption centres would be the fulcrum of the company’s growth agenda, as Tier-3 and Tier-4 markets now provide enormous headroom for brand penetration.
Although Dikshit avoided speaking about geopolitical headwinds like the Iran-Israel conflict, he noted that the recent retail downturn—fuelled by escalating competition on both online and offline platforms—was already stabilising. He estimated that at least two of the firm’s brands would cross Rs. 2,500 crore (US $ 290 million) in revenue each in the near future, from the current Rs. 2,000 crore (US $ 232 million) levels, based on category expansion and greater retail reach.
Analysts project Aditya Birla Lifestyle to enhance operating margins by 300 basis points per year, underpinned by scale and operational efficiencies. The company is also aiming for a debt-free balance sheet by FY ’27. In terms of the demerger, Aditya Birla Lifestyle took over Rs. 1,000 crore (US $ 116 million) of Aditya Birla Fashion’s total debt of Rs. 3,000 crore (US $ 348 million) as of 31st March 2024, while the rest of Rs. 2,000 crore (US $ 232 million) is with the parent firm.
With its sharpened emphasis on delivery, a strong portfolio of brands, and a solid presence in the home market, Aditya Birla Lifestyle seems set to drive a dominant niche in India’s expanding fashion retailing market.
