Aditya Birla Fashion jumps on partnering Tarun Tahiliani for men's ethnic wear brand

Aditya Birla Fashion and Retail (ABFRL) rose 3.77% to Rs 174.6 after the company announced a strategic partnership with Indian designer Tarun Tahiliani to form a new entity that will soon launch a contemporary men's ethnic wear brand.

The new brand will operate in the premium occasion wear segment and will offer the entire range of high quality, sophisticated celebration wear for men at accessible price points. The new brand aims to build a Rs 500 crore business in the next 5 years with more than 250 stores across the country.

ABFRL will hold 80% stake in the new entity while Tarun Tahiliani will hold the remaining 20%. The brand will launch the first set of retail stores by September 2021.

As part of the deal, ABFRL will also acquire 33% stake in the existing luxury couture business of Tarun Tahiliani, with the option to increase it to 51% in the next few years.

ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. It is India's first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats.

The company's consolidated net profit stood at Rs 58.44 crore in Q3 FY21 as against net loss of Rs 37.64 crore in Q3 FY20. Consolidated revenue from operations tumbled 19.61% to Rs 2,076.19 crore in Q3 FY21 from Rs 2,582.74 crore in Q3 FY20.

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