By Malvika Gurung
Investing.com -- The country’s leading fashion retail company Aditya Birla Fashion and Retail Ltd (NS: ADIA ) announced that it will acquire a 51% majority stake in the House of Masaba Lifestyle for a cash consideration of Rs 90 crore, to foray into the rapidly growing beauty and personal care segment.
House of Masaba is a luxury brand founded by fashion designer Masaba Gupta, expanding over a broad portfolio of clothing, beauty & personal care, jewellery and accessories, among other segments.
Indian retail majors like ABFRL and Reliance (NS: RELI ) Retail have been increasing their presence in the fashion industry, going on a spree of acquisitions. In January 2021, ABFRL purchased a 51% stake in the luxury wedding brand Sabyasachi, followed by Mukesh Ambani-owned Reliance Retail acquiring a 52% holding in the label Ritu Kumar, in October 2021.
The acquisition of a 51% stake in House of Masaba will bolster ABFRL’s foothold in the ‘fashion for young and digitally native’ consumer market.
The retail company also looks forward to scaling the D2C channel for Masaba’s brand by leveraging its strong connection with younger and digitally influenced consumers, stated a joint statement by the two entities.
House of Masaba Lifestyle’s annual revenue generated in FY22, not including its beauty business is estimated to be around Rs 30 crore, and ABFRL stated that the brand targets to achieve annual revenues worth Rs 500 crore over the upcoming five years.
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