Can Forever 21 make Aditya Birla India’s biggest fashion player?
Aditya Birla Fashion and Retail Ltd (ABFRL) is buying fashion chain Forever 21 from Diana Retail Pvt Ltd for $26 million.
The company said that the acquisition would help the Group in becoming the largest integrated branded fashion player in the country.
Forever 21 has over 700 stores globally, and is expected to help the group in establishing a strong foothold in the women’s apparel segment, it said.
ADITYA BIRLA FASHION BUYS FOREVER 21 INDIA pic.twitter.com/Q3TLFmuczw
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The Birla Fashion group has been in trouble for the past few years.
ABFRL conglomerate recorded a loss of Rs 104.14 crore in the year end March 2016 which was narrowed down from Rs 228.14 crore loss in previous fiscal year.
The fourth quarter of FY 16 recorded a loss Rs 109 crore.
The group has been attempting to become the largest branded clothing company in India for years and has turned to inorganic growth to achieve this goal.
In 2013 Aditya Birla Nuvo Ltd acquired Pantaloons.
Early this year, in January 2016, Aditya Birla Group consolidated its garment business which merged Madura Garments Lifestyle Retail and Pataloons from Aditya Birla Nuvo into a single entity.
Along with its online platform, Forever 21, which is eminent among the youth of today has more than 6 outlets in India which will contribute significantly to the Birla Fashion Retail revenue.