Aditya Birla Fashion Retail (ABFRL) has announced that it has entered into an agreement to acquire TCNS Clothing, the owner of ethnic brands such as W, Aurelia, Wishful, Folksong, and Elleven, for Rs 1,650 crore. The acquisition of the publicly listed company is expected to be one of the largest deals in the Indian fashion space.
Under the deal, ABFRL will first acquire the founder’s stake in TCNS and then make a conditional open offer to acquire a 29% stake in TCNS at Rs 503 per share from public shareholders. The remaining stake will be acquired from the founder promoters to reach an overall shareholding of 51% in TCNS. The company then plans to merge TCNS into itself.
ABFRL has been building its ethnic portfolio over the last five years through a series of strategic actions. With this acquisition, the company’s ethnic wear portfolio is expected to reach Rs 5,000 crore in three years.
The TCNS stock ended Friday’s trade up nearly 5% at Rs 521 on the Bombay Stock Exchange (BSE).
Aditya Birla Group chairman Kumar Mangalam Birla said, “This deal is yet another marker of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy. As India stands on the cusp of a multi-decadal consumption boom, ABFRL is a forerunner in shaping the fashion landscape of our vibrant nation. By embracing TCNS’s portfolio of women’s ethnic brands, we are reinforcing our commitment to ethnic wear, the largest category in the apparel industry. With this acquisition, the fast-growing ABFRL platform is poised for the next phase of transformational growth.”
TCNS Clothing, which was founded in 2003 by husband and wife duo Onkar and Arvinder Pasricha, operates in the women’s ethnic wear segment and has a retail footprint of more than 500 exclusive brand outlets and more than 2,500 multi-brand outlets in India and other countries.
The acquisition is expected to strengthen ABFRL’s presence in the women’s ethnic wear segment, which is the largest category in the Indian apparel industry. ABFRL already has a strong presence in the menswear, womenswear, and youth fashion segments with brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, Pantaloons, and Forever 21.
The Indian fashion industry has been growing rapidly over the last few years, driven by rising disposable incomes, a growing middle class, and changing consumer preferences. With this acquisition, ABFRL is well-positioned to capture a larger share of the growing market and further cement its position as a leading player in the Indian fashion industry.
The acquisition is subject to regulatory approvals and customary closing conditions and is expected to be completed in the coming months.
This acquisition is a significant milestone for ABFRL as it complements its existing portfolio of exceptional brands across the entire spectrum of Indian fashion. The move reinforces ABFRL’s commitment to ethnic wear, which is the largest category in the apparel industry.
ABFRL’s strong financial position, combined with TCNS’s well-established brands and loyal customer base, will enable the company to capitalize on the growth opportunities in the Indian fashion industry. The acquisition is also a testament to ABFRL’s commitment to shaping the fashion landscape of India and its faith in the dynamism and buoyancy of the Indian consumer economy.
The Indian fashion industry is one of the fastest-growing sectors in the country, with a growing demand for high-quality, affordable fashion. This acquisition by ABFRL is expected to boost the company’s growth and profitability in the coming years.
In conclusion, the acquisition of TCNS Clothing by ABFRL is a significant development in the Indian fashion industry. The deal is a testament to ABFRL’s commitment to strengthening its ethnic wear portfolio and shaping the fashion landscape of India. With the amalgamation of TCNS with ABFRL, the company is well-positioned to capitalize on the growth opportunities in the Indian fashion industry and create value for its stakeholders.
