Flipkart To Invest INR 1,500 Cr In Aditya Birla Fashion And Retail
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The Aditya Birla Fashion and Retail Limited (ABFRL) on Friday announced a strategic partnership with Flipkart Group through an investment of INR 1,500 crore, Flipkart Investments will own an equity 7.8 per cent stake in ABFRL, as the companies partner to leverage synergies in the fashion segment.
ABFRL plans to scale-up its play in emerging high-growth fashion establishing this as the new engine of growth for the company. Furthermore, it will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities; positioning it amongst the most comprehensive fashion giants in the country.
“We look forward to this partnership with Flipkart Group, and our collective journey to delight customers of a young and aspirational India. Given the complementary strengths of ABFRL and Flipkart Group, this partnership has the potential to dramatically accelerate the growth of the apparel industry in India and reshape apparel commerce,” said ABFRL managing director Ashish Dikshit, commenting on the deal.
“This deal also provides a tremendous opportunity to build the scale of existing brands and expand its brand portfolio into emerging consumer segments,” Dikshit added.
The recent launch of Flipkart Wholesale is a testament to our commitment to accelerate the growth of kiranas and MSMEs (micro, small and medium enterprises) in efforts to democratize e-commerce in India, drive access and affordability, delight customers, create lakhs of jobs in the ecosystem and empower generations of entrepreneurs and MSMEs in India.
“At the Flipkart Group, we are focused on building new partnerships that will help us meet the demands of the discerning Indian consumer who seek quality and value. Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India,” said Flipkart Group chief executive officer Kalyan Krishnamurthy, speaking on this development.