Aditya Birla Fashion And Retail Limited Enters Into Direct To Consumer (D2C) Business

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On Thursday, Aditya Birla Apparel and Retail Limited (ABFRL), India’s largest fashion brand, revealed plans to create a platform for entering the Direct to Consumer (D2C) market. The Company’s Board of Directors gave omnibus approval today to establish a new subsidiary in order to build a portfolio of distinct, new-age digital brands across categories in fashion, beauty, and other allied lifestyle segments. Organic and inorganic techniques will be used to build the D2C portfolio. The initial funding for this initiative will come from ABFRL’s internal accruals. The company will try to bring in external financing at the proper time to help accelerate its expansion. By 2025, India’s D2C market is anticipated to be worth $100 billion.

The newly formed firm will incubate and acquire promising and scalable D2C brands organically. ABFRL’s proposition, in addition to providing growth capital, is based on its strong operational skills, where it will leverage its extensive experience and capabilities to develop this portfolio.

“We are excited about the D2C opportunity in India. At ABFRL, we want to build the next set of iconic brands in the digital space as we evolve with our changing consumers. Leveraging our core capabilities around design, product creation, sourcing, and brand building that have enabled us to create some of India’s most loved fashion brands in the offline space, we now wish to craft a blockbuster portfolio in the digital space as well. We are confident that this foray will successfully meet the aspirations of digitally native customers and also create long-term value for investors and other stakeholders,”

Commenting on the move, Mr. Ashish Dikshit, Managing Director, ABFRL said.

The organization will now speed up the process of constructing the D2C infrastructure and selecting essential personnel for this endeavor. To develop this business quickly, ABFRL will strive to connect to the broader IT ecosystem and engage efficiently with its e-commerce partners, tech service providers, and digital marketing firms.

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