 "Aditya Birla Fashion and Retail to take over Reebok's operations in India")
Aditya Birla Group’s fashion retail division Aditya Birla Fashion and Retail (ABFRL) has signed a long-term licensing agreement with US-based brand management company Authentic Brands Group (ABG) to exclusively distribute and sell Reebok products via wholesale, e-commerce, and Reebok branded retail stores in India and other Association of Southeast Asian Nations countries.
The deal signals ABFRL’s foray into the sports and activewear segment.
The transfer of ownership of the Reebok brand from Adidas to Aditya Birla Group is expected to close in the first quarter of 2022, the company said in its release.
“Over the past few years, this segment has been growing rapidly on the heels of rising income levels, increased health consciousness, and the adoption of active lifestyles by young Indians,” the company said in the release, adding the segment is expected to grow to $13 billion by 2023-24 at an annual growth rate of 14 per cent.
“As Indians get more active, athletic, and health-focused, their consumption of apparel and accessories is expected to increasingly change in line with these trends, providing an opportunity to build iconic brands of global repute,” Ashish Dikshit, managing director, ABFRL, said in the release, adding, “In partnership with ABG, we plan to accelerate Reebok’s business in India, combining its global appeal and salience amongst Indian youth.”
PERFECT FIT
- ABFRL has been on an acquisition spree
- In Jan, it acquired 51% stake in Sabyasachi
- In Feb, it partnered Tarun Tahiliani, taking 33% holding in his men’s ethnic wear label house
- Had acquired Shantanu & Nikhil’s apparel brand Finesse in 2019
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