Aditya Birla Group has chalked out an aggressive five-year plan for fashion, lifestyle units
Aditya Birla Fashion and Retail plans to aggressively expand to triple its business and double the scale of its newly formed lifestyle brands subsidiary over the next five years.
New Delhi: Aditya Birla Fashion and Retail Ltd (ABFRL) plans to aggressively expand to triple its business and double the scale of its newly formed lifestyle brands subsidiary over the next five years.
ABFRL, with a refined brand portfolio, a broad presence across high-growth segments, and a gross cash balance of ₹2,350 crore, is set to begin its next phase of growth. It targets a three-time revenue increase and a two-times margin expansion over the next five years, said Jagdish Bajaj, chief financial officer, at the company’s post-earnings call on Monday.
Aditya Birla Lifestyle Brands Ltd (ABLBL), backed by a portfolio of over 3,200 stores and healthy free cash flows, is positioned to double in scale and significantly expand margins over the next five years, with over 300 new stores already planned for FY26, the company’s management said.
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The board of directors of ABFRL had approved the demerger of its Madura Fashion & Lifestyle business into ABLBL last April. ABLBL is set to be listed separately once the demerger is complete. It expected to be effective from 1 May, with a likely listing by the end of June.
“For the next 12 months, leveraging its strong caseloads, ABLBL is set to embark on a historic expansion, with an aggressive retail rollout across its brand portfolios, heading over net 300 stores across the country to accelerate growth and deepen market presence. Now operating as an independent entity post-demerger, ABLBL is uniquely positioned to chart its own value creation journey," Bajaj said.
“Combined with a stable, high-margin core, a high-growth emerging brand portfolio, and strong brand equity with its consumers, the company is strongly positioned to confidently invest in driving growth, innovation, and long-term leadership in the fashion and apparel space," he said.
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ABLBL operates brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and Simon Carter. As of 31 March, it had a retail footprint of 3,253 exclusive brand outlets, a presence across 38,000 multi-brand outlets, and over 7,000 shop-in-shops in department stores across the country.
ABFRL, on the other hand, includes brands like Pantaloons and Style Up; an ethnic wear portfolio comprising Jaypore, Tasva and TCNS brands, along with designer brands Shantnu & Nikhil, Tarun Tahiliani, Sabyasachi and House of Masaba. It also features luxury offerings such as The Collective, Galleries Lafayette and a portfolio of digital brands under TMRW. As of 31 March, ABFRL had a presence across 1,167 stores.
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In the quarter ended March, the company raised $490 million of equity capital through a qualified institutional placement and a preferential issuance.“With that, we have infused tremendous strength into the balance sheet of de-merged ABFRL, with an availability of ₹2,350 crore cash at a consolidated level, to pursue aggressive growth across its multiple high-growth platforms. Our industry scenario during the quarter continues to see strong macro-admin with sustained impact on consumer discretionary consumption," Bajaj said.
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