Aditya Birla Fashion Retail to acquire two ethnic wear brands
Aditya Birla Fashion and Retail Ltd (ABFRL) said on Monday it will acquire ethnic wear brands Jaypore and TG Apparel & Decor Pvt Ltd to strengthen its position in the branded fashion space.
The company said ethnic wear is the largest segment in the Indian fashion apparel market.
"The board of directors of the company ... have approved entering into a share purchase agreement with the existing shareholders of Jaypore E-Commerce Pvt Ltd, which sells ethnic fashion merchandise under its own brand Jaypore and of other third-party brands," Aditya Birla Fashion and Retail Ltd said in a regulatory filing.
The board also approved entering into a share purchase agreement with the existing shareholders of TG Apparel & Decor Pvt Ltd, which retails ethnic fashion, both online and offline, the company added.
Ethnic wear is the largest segment in the Indian fashion apparel market. While ABFRL has built a diversified portfolio of brands across different segments, ethnic wear space is currently under-represented in our bouquet of offerings to consumers.
"The proposed acquisition is, therefore, a great strategic addition to our portfolio and gives us a strong footing in a segment that is growing in double digits. This acquisition will further strengthen leadership position of ABFRL in the branded fashion spac," ABFRL Managing Director Ashish Dikshit said.
The above is subject to receipt of necessary statutory approvals, if any and customary closing conditions, which are expected to get completed in 30-45 days.
Jaypore was launched in 2012 by Shilpa Sharma, Puneet Chawla, and Arti Jesrani for the US market, and a global launch soon followed. It also raised $5 million in its first round of institutional funding led by Aavishkaar in 2016. In 2014, the platform launched its own private label. With in-house designers, it produces contemporary apparel exclusively using traditional, handwoven fabric, and textile embellishment techniques.
In September last year, the Jaypore team had opened its first offline store in Delhi. The average order value at Jaypore is Rs 5,000, while the product cost is in the range of Rs 2,500 to Rs 3,000.