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India's ABFRL targets ₹25000 cr in revenues after 5 years: Chairman

10 Sep '21
2 min read
Pic: ABFRL
Pic: ABFRL

India’s Aditya Birla Fashion and Retail Ltd (ABFRL) is targeting a revenue of ₹25,000 crore after five years, its chairman Kumar Mangalam Birla told shareholders at its annual general meeting recently. In fiscal 2020-21, ABFRL had recorded a net revenue of ₹5,249 crore and its earnings before interest, taxes, depreciation, and amortization (EBITDA) were ₹628 crore.

"The plumbing work is done. And now is the moment for a big leap to unlock the full potential of this business. We recognise the opportunity. And we will, for sure, make it count in a manner that creates value for all stakeholders," Birla said.

ABFRL has lifestyle brands like Louis Philippe, Van Heusen, Allen Solly and Peter England. It has licensed rights for US-based fast-fashion brand Forever 21 and also operates large format fast fashion store Pantaloons.

"As we look ahead, the markets are expected to return towards normalcy towards the latter half of FY22. In addition to favourable macro factors, the industry will be further strengthened by the increased adoption of digital technology and the underlying trend of value migration from the unorganised to the organised sector," he was quoted as saying.

According to Birla, ethnic wear is a clear area of focus for ABFRL. "Ethnic is the largest segment in the fashion and apparel sector with a significant profit pool. It is also a sector that has strong resilience to apparel cycle fluctuations and is least impacted by competition from global brands," he said.

In January this year, ABFRL had acquired a 51 per cent stake in designer brand Sabyasachi and entered into a strategic partnership with brand 'Tarun Tahiliani' in February.

It has also raised ₹1,500 crore by issuing a 7.8 per cent stake on a preferential basis to Walmart-owned Flipkart Group in the last fiscal.

Birla said the pandemic had put a temporary strain on the balance sheet and the company's debt peaked upwards of ₹3,000 crore at the end of the first quarter the last fiscal.

Birla said the company has adopted a three-pronged strategy towards digital acceleration. It revamped its brand and consumer digital connect, aggressively pushed e-commerce play through deeper partnerships with third-party ecommerce platforms and also by investing in our own brand.com and digitised the backend operations. "As a result, digital channel sales grew 40 per cent over the past year,' he added.

Fibre2Fashion News Desk (DS)

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