"With great joy, we return to open Lakme Fashion Week, where we showcase our first serious fashion collection of occasion-wear with a twist as opposed to a bridal bent,"
India’s one of the leading fashion companies, Aditya Birla Fashion and Retail Limited has announced a partnership with India’s ace designer Tarun Tahiliani to form a new entity that will soon launch a contemporary men’s ethnic wear brand. Under the partnership, ABFRL and Tahiliani will jointly set up a new entity that will retail contemporary ethnic wear and accessories for men under a new brand. ABFRL will hold 80% in the venture and Tahiliani 20%. ABFRL said the partnership will strengthen its position in the ethnic wear segment. The new entity will open the first set of retail stores by September. The company plans to operate 250 stores over the next five years for the men’s ethnic wear brand, targeting sales of ₹500 crores.
ABFRL has been building on its portfolio of ethnic brands through partnerships and acquisitions of relevant businesses. In 2019, it acquired a 51% stake in designer brand Shantanu & Nikhil while also signing an over `100-crore deal to acquire ethnic apparel and lifestyle retailer Jaypore. The recent transaction comes less than a month after the company struck a `398-crore deal to acquire a 51% stake in designer brand Sabyasachi.
From the recent acquisitions, it is clear that ABFRL is betting big on ethnic, analysts at Edelweiss Research said in a note. “With the new venture, the key thing to understand is how the company will differentiate it from Shantanu & Nikhil’s positioning and focus which is also men’s wear driven,” they said. Besides, ABFRL will have to strategise on driving scale and synergies with its existing businesses while managing the cultural aspects of these companies, the analysts added.
Tarun Tahiliani is known for their opulent traditional wear for both men and women, which retails through his eponymous brand, and for his bridal couture. In June 2019, ABFRL had acquired ethnic apparel and lifestyle retailer Jaypore for ₹110 crores. The deal was intended to help it tap the fast-growing ethnic apparel market. In July 2019, the firm announced a partnership with Shantanu & Nikhil.
According to Technopak, the total Indian ethnic wear market is valued at `70,000 crores; women’s ethnic wear has an 85% (`59,500 crores) share in the market and is expected to grow at a CAGR of 10% till 2022.