The multi-billion-dollar fashion industry of India is a complex ecosystem of mergers and acquisitions. This business of luxury thrives on creativity and commerce.
Photo: The Sabyasachi Calcutta Sling Bag
Reliance Brands Limited (RBL) and Aditya Birla Fashion and Retail Limited (ABFRL) are leading the charge in India's fashion retail industry, competing for dominance in the premium market. The two giants are aggressively acquiring top domestic designers to transform them into international brands. As of May 2023, ABFRL reported a revenue of Rs. 13,996 crore, spanning a retail space of 11.9 million square feet. In contrast, RBL's gross revenue for the fiscal year 2024 stood at an impressive ₹3,06,786 crore, reflecting a 17.8% increase from the previous year. Both companies have successfully corporatised luxury fashion in India by acquiring iconic designers such as Sabyasachi, Manish Malhotra, Ritu Kumar, and Tarun Tahiliani, solidifying their positions at the forefront of the industry.
Aditya Birla Fashion & Retail Ltd (ABFRL)
In 2019, ABFRL acquired a 51% stake in Finesse International Design, the parent company of Shantanu & Nikhil, for Rs 60 crore ($8.8 million). This acquisition, executed through a combination of primary equity infusion and secondary share purchase, marked ABFRL's entry into the bespoke apparel segment. The brand is known for its avant-garde and contemporary designs, which appeal to modern, fashion-forward consumers. ABFRL has since launched three stores for its diffusion line, S&N by Shantanu and Nikhil, broadening the brand's accessibility while maintaining its exclusive charm.
In 2021, ABFRL acquired a 51% stake in the luxury designer label Sabyasachi, founded by Sabyasachi Mukherjee, for Rs 398 crore ($53 million). Sabyasachi, known for his regal and intricate designs, has dressed high-profile celebrities such as Deepika Padukone, Nita Ambani, and Oprah Winfrey. The brand's products, often priced upwards of Rs 2 lakh, appeal to a discerning customer base. This acquisition aligns with ABFRL's aim to dominate the luxury fashion market by partnering with iconic designers.
ABFRL acquired a 51% stake in House of Masaba for Rs 90 crore ($12.14 million) in 2022. Founded by Masaba Gupta in 2009, the brand is known for its bold and eclectic designs. House of Masaba's products, priced as high as Rs 90,000, target a young and vibrant audience. The brand aims to achieve annual revenues of Rs 500 crore in the next five years, primarily through digital direct-to-consumer (D2C) channels. This acquisition highlights ABFRL's focus on leveraging digital platforms to expand its reach and cater to the evolving consumer preferences.
In 2024, ABFRL increased its shareholding in Goodview Fashion, the manufacturer and seller of the couture brand Tarun Tahiliani, to 51% from about 33.5% in 2021. The additional 17.5% stake was acquired for Rs 127 crore. This strategic move reflects ABFRL’s commitment to strengthening its foothold in the luxury couture segment, capitalizing on the brand's established reputation and affluent clientele.
Reliance Brands Limited (RBL)
RBL's parent company, Reliance Retail Ventures Ltd (RRVL), began investing in Genesis Colors Limited (GCL), the holding company of Satya Paul, in 2018 by acquiring a 16.31% stake for Rs 34.80 crore. RRVL increased its stake to 29.07% in 2019 with an additional investment of Rs 45 crore. Satya Paul, known for its vibrant prints and innovative designs, aligns with RBL's goal of diversifying its fashion portfolio and appealing to a wide range of consumers.
In 2021, RBL acquired a 40% stake in MM Styles Private Limited, the company behind Manish Malhotra's eponymous brand. Launched in 2005, the brand has established itself as a powerhouse in Indian fashion, with flagship stores in Mumbai, New Delhi, and Hyderabad, along with two shop-in-shops and a virtual store. This investment underscores RBL's strategy to align with influential designers who have a strong presence in the luxury fashion segment.
Reliance Retail Ventures Limited (RRVL), led by Isha Ambani, acquired a 52% stake in Ritika Private Limited, the parent company of the Ritu Kumar fashion label. This acquisition was completed in stages, with RRVL first acquiring a 35% stake from Everstone, a Singapore-based private equity firm, in 2014 for $16.6 million, and then increasing its share to 52% in 2021 by acquiring an additional 17%. Ritu Kumar's brand, known for its rich heritage and traditional designs, complements RBL's strategy of preserving and promoting Indian cultural aesthetics on a global platform.
RBL expanded its portfolio by acquiring a 60% stake in couturier Anamika Khanna’s brand AK-OK in 2021. While the deal does not include Khanna’s main line, she continues as the creative director of AK-OK. The brand focuses on contemporary designs that blend traditional Indian aesthetics with modern sensibilities. Khanna expressed confidence in RBL's ability to steer AK-OK towards becoming a globally recognized new-age brand, thanks to Reliance's extensive retail network and experience in managing luxury and premium brands.
In 2022, RBL acquired a 51% majority stake in Indian Couturiers Abu Jani Sandeep Khosla (AJSK). Established in 1986, the Mumbai-based label has made significant contributions to Indian fashion with its exquisite designs. AJSK encompasses three additional labels: ASAL by Abu Sandeep (diffusion, formal, wedding, and women's wear), Gulabo by Abu Sandeep (casual and formal women's wear), and Mard by Abu Sandeep (formal and occasion wear for men). The partnership with RBL aims to fulfill AJSK's ambition of global expansion, leveraging RBL's resources and expertise to reach a wider audience.
In 2022, RBL partnered with Rahul Mishra to launch a global ready-to-wear brand, AFEW by Rahul Mishra. Under this agreement, RBL and Mishra hold a 60:40 stake in the new brand. The AFEW Rahul Mishra ready-to-wear collection debuted during Paris Fashion Week in 2023, marking a significant milestone in bringing Indian fashion to international runways. Mishra's designs, celebrated for their intricate craftsmanship and sustainability, resonate with global audiences, enhancing RBL's international presence.
General Atlantic Service Company
General Atlantic, a US private equity firm, invested $20 million for a 23% stake in House of Anita Dongre. Founded in 1995, the brand comprises four distinct labels: AND (western wear), Global Desi (contemporary wear), Grassroot (sustainable luxury), and Pinkcity (jewelry). Anita Dongre is renowned for her commitment to sustainability and innovative designs, making her a key player in the fashion industry. This investment underscores General Atlantic's strategy to support versatile and sustainable fashion brands with a strong market presence.
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