<img class="gwt-Image" src="/photo/55996906.cms" /> 
Indulgence is the word that solely describes India’s rich culture and heritage. And<a href="http://www.businessinsider.in/You-Goa-trip-itinerary-must-have-Salaulim-dam/articleshow/55787460.cms"> fashion</a> from grassroots has always been an excitement for the people in urban Indian cities. However, they didn’t have much exposure to the availability of the fashion and interior items everywhere. Those were either limited to fairs and expos, or sold in boutiques, which came with expensive price tags. 
 Sensing this as a fertile ground to kick start a new venture, <keyword id="264580" type="PERSON" weightage="20" keywordseo="Shilpa-Sharma">Shilpa Sharma</keyword> and <keyword id="3251968" type="PERSON" weightage="20" keywordseo="Puneet-Chawla">Puneet Chawla</keyword> started <keyword id="3037226" type="UNKNOWN" weightage="20" keywordseo="jaypore">Jaypore</keyword>.com, an humble attempt to bring India a little closer to the world. Dedicated to creating a unique interpretation of age-old crafts, Jaypore started to partner with artisanal communities, textile designers, and independent artists (and the occasional maverick) to showcase a new, contemporary design language that comes from India and belongs everywhere on the globe. 
 
And the result is admirable. With <a href="http://www.businessinsider.in/You-Goa-trip-itinerary-must-have-Salaulim-dam/articleshow/55787460.cms">monthly transactions</a> of over 20k to 30K products, and monthly traffic of over 1.5 million with half a million registered users, it is well on its way to achieve its target growth of 200% for the year with an average revenue per year of Rs 60 -70 crore. Started with a seed funding from angel investor <a href="http://www.businessinsider.in/You-Goa-trip-itinerary-must-have-Salaulim-dam/articleshow/55787460.cms">Haresh Chawla</a>, partner at private equity firm <keyword id="256283" type="COMPANY" weightage="20" keywordseo="India-Value-Fund">India Value Fund</keyword>, early this year Jaypore has received a Series A round of funding worth $5 million in from Mumbai-based (social venture capital firm) equity investing firm Aavishkar. 
 
So how did all start? “We actually met at the <keyword id="6368640" type="COMPANY" weightage="20" keywordseo="Leela">Leela</keyword>. As in all businesses - not only ours - in the initial days we really didn’t know what we were building. We had some sort of an idea of what we wanted to do but had no clue about how to go about doing it,” Puneet <keyword id="6329" type="PERSON" weightage="20" keywordseo="Chawla">Chawla</keyword>, co-founder and CEO of Jaypore told exclusively to <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>. 
 
The first few weeks were a lot of brainstorming and experimentation about who the target audience was, what they were looking for and where they could found. 
 
Sourcing was a challenge “<keyword id="6360500" type="PERSON" weightage="20" keywordseo="Shilpa">Shilpa</keyword> and I took our first sourcing trip to Jaipur in March 2012. We met a lot of people and they weren’t too keen on coming on board because they didn’t want to consign product to us. They wanted us to buy the product outright. It took a lot of effort to convince them and the early vendors were actually people Shilpa and the team had relationships with – people they had worked with in the past. Convincing people to give product to us and on consignment was the toughest thing in the beginning,” said Chawla. 
 
CEO = delivery man 
“I did a few deliveries in<a href="http://www.businessinsider.in/You-Goa-trip-itinerary-must-have-Salaulim-dam/articleshow/55787460.cms"> south Delhi </a>for no other reason but to meet the customer and visualise who these people are. The challenge with an online medium, unlike brick and mortar is that you don’t have any physical interaction with the customer, which is extremely essential. I did these deliveries primarily to meet them, to understand their preferences, what kind of clothes they wear, the houses they live in. These helped us in shaping our voice, how we communicate on social media, our newsletter,” added Chawla. 
 
“I also used to do customer service before we hired someone. It’s really the best way to get insights. I knew for instance that people used to ask us why we didn’t have cash on delivery in the early days, the problems they had with courier, with returns. It helped us design our returns process and communication. I also used to manage our social media pages. In fact, some of the people I used to speak to in the early days still shop from us.” 
 
<img class="gwt-Image" src="/photo/55996909.cms" /> 
 
Competition 
“Yes there are boutiques and curators and there are retailers but there isn’t anyone who is doing this at the national level or a cross country level in terms of showcasing the best of India without geographical constraints as well as constraints on the physical space available – we would like to be the largest platform with the best that India has to offer,” said Shilpa Sharma, co-founder and head of product, sourcing and design of Jaypore. 
 
Targeting “We didn’t start with doing a lot of paid targeting. In the early days all our targeting was organic - through either <keyword id="6354576" type="CITY" weightage="20" keywordseo="Facebook">Facebook</keyword> or <keyword id="939877" type="COMPANY" weightage="20" keywordseo="Pinterest">Pinterest</keyword>. People got to know us through Facebook and that became our biggest brand building platform. Word of mouth kicked in later. In the first year or so we didn’t spend any money on marketing but we did a few smart things,”Chawla told Business Insider. 
 
“It was a lot of hustle because we were bootstrapped and didn’t have any money. I would personally send emails to about 50 people a day,” recalled he. 
 
Profit margin 
“We were making fairly healthy gross margins but at the net level we weren’t making that much money because the cost of logistics and managing a US office for returns was very high. Though it seemed like we were working on <a href="http://www.businessinsider.in/You-Goa-trip-itinerary-must-have-Salaulim-dam/articleshow/55787460.cms">high margins</a>, at the net level we weren’t. Which is when we realized that it made far more sense to focus on India,” said Chawla. 
 
(Image credit: Facebook)

Young India is hungry for everything ethnic -- success of
this young start up is the proof

<keyword id="3378227" type="General" weightage="20" keywordseo="aditya-birla-fashion-and-retail" source="Orion">Aditya Birla Fashion and Retail</keyword> Limited (ABFRL), India's leading fashion company, today announced a partnership with Christian Louboutin, one of the world's most famous <keyword id="19734234" type="General" weightage="20" keywordseo="shoe-designers" source="Orion">shoe designers</keyword> known for his high-end <keyword id="23820" type="General" weightage="20" keywordseo="footwear" source="Orion">footwear</keyword> and iconic soles. This joint venture envisages the transfer of the current Indian business into a newly incorporated subsidiary of ABFRL where the partners will hold equal stake. Founded in 1991 in the heart of Paris, Christian Louboutin is one of the leading names in global luxury, world famous for its signature red sole shoes. Christian Louboutin has successfully diversified its business into men's footwear, <keyword id="939668" type="General" weightage="20" keywordseo="leather-goods" source="Orion">leather goods</keyword> &amp; <keyword id="23964" type="General" weightage="20" keywordseo="accessories" source="Orion">accessories</keyword>, beauty and kids. Christian Louboutin has established its retail presence in over 30 countries. "We are excited to partner with ABFRL's team and look forward to working with them to manage and develop the business in India which is an extremely important market for us," commented Alexis Mourot, Christian Louboutin's Group CEO. Ashish Dikshit, Managing Director, Aditya Birla Fashion and Retail Limited commented, "We are thrilled to announce our strategic alliance with Christian Louboutin, a true icon in luxury footwear. This partnership reflects our commitment to offering our discerning customers the very best in elegance and style. It also exemplifies our ambition to develop and shape the future of the luxury market in India." "We are excited to welcome Christian Louboutin into the ABFRL family and building a strong platform for the brand in India. The brand's distinctive style and craftsmanship appeals to a discerning Indian audience that is growing rapidly," Sathyajit Radhakrishnan, CEO of International Business, Aditya Birla Fashion and Retail Limited. Christian Louboutin established his business in the heart of Paris in 1991, first with a collection for Women followed by a Men's collection a few years later, both recognizable by the signature red lacquered sole. 2014 welcomed Christian Louboutin Beaute, while in, 2022 the House launched new categories dedicated to Kids and Pets. With a prolific collection of shoes, leather goods and accessories, Christian Louboutin now counts more than 150 points of sales around the world. ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. With revenue of Rs. 12,418 Cr. spanning retail space of 10.8 million sq. ft. (as on March 31, 2023), it is India's first billion dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats. The Company has a network of 3,977 stores across approximately 33,535 multi-brand outlets with 6,723 point of sales in department stores across India (as on 31st March 2023). It has a repertoire of India's largest brands in Louis Philippe, Van Heusen, Allen Solly and Peter England, established over 25 years. Pantaloons is one of India's leading fashion retailer. The Company's international Brands portfolio includes - The Collective, Amongst India's largest multi-brand retailers of international brands and has long term exclusive partnerships with select brands such as Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, Reebok and Galeries Lafayette. Van Heusen Innerwear, Athleisure and Active wear is establishing itself as India's most innovative and fashionable brand. The Company's foray into branded ethnic wear business includes brands such as Jaypore, Tasva &amp; Marigold Lane. The company has strategic partnerships with Designers 'Shantnu &amp; Nikhil', 'Tarun Tahiliani', 'Sabyasachi' and 'House of Masaba'. In addition, to cater to the needs of digitally native consumers, ABFRL is building a portfolio of Digital-first brands under its technology led 'House of D2C Brands' venture TMRW. TMRW is on a path to building a portfolio of Digital First brands in partnership with founders of emerging brands in the E-Commerce market. With a focus on Fashion &amp; Lifestyle categories, TMRW is building a portfolio of the most loved consumer brands that tap into the significant growth potential in India and globally.

Christian Louboutin Announces a Joint Venture Partnership in India with Aditya Birla Fashion and Retail Limited

<ul><li>At around ₹1,650 crore for 51% stake, the acquisition could be one of the largest deals in the Indian fashion space.</li><li>Post the merger, every shareholder of TCNS will receive 11 shares of Aditya Birla Fashion for every 6 shares that they hold in TCNS.</li><li>Analysts are not very positive on the merger given the fact that TCNS has been making losses for the past two financial years and has been underperforming its peers.</li><li>With this acquisition, analysts expect Aditya Birla Fashion’s net debt to rise to the highest level in three years. In fact, the company may also have to raise money to finance the acquisition. </li></ul>After Aditya Birla Fashion and Retail (ABFRL) announced a merger with TCNS Clothing over the weekend, shares of both the companies fell sharply on Monday – while TCNS tanked 20%, Aditya Birla Fashion fell 5%. As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29% of TCNS at ₹503 per share from public shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51% in TCNS. Post the merger, every shareholder of TCNS will receive 11 shares of ABFRL for every 6 shares held in TCNS. The acquisition could be one of the largest deals in the Indian fashion space as the value of the promoter stake and open offer consideration for TCNS is around ₹1,650 crore for 51% stake. Kumar Mangalam Birla, chairman at Aditya Birla Group, said the acquisition of TCNS prepares ABFRL for the next phase of growth. “By embracing TCNS's portfolio of loved 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.” Analysts feel merger unnecessary given TCNS Clothing’s underperformance Analysts, however, are not very positive on the merger given the fact that TCNS has been making losses for the past two financial years – despite a narrowing of losses, it is still underperforming its peers. “We are not sure why ABFRL deemed it necessary to acquire TCNS’ business, other than the fact that it immediately pushes up its revenue size by 8-10%. What ABFRL is buying is essentially ₹12-13 billion of annual revenue, given that it may need to almost entirely reconstruct the profit and loss (P&amp;L) from scratch from a profitability point of view,” said a report by JM Financial. Aditya Birla Fashion &amp; Retail will raise ₹700-800 crore in debt to help fund the acquisition of TCNS, according to an <a href="https://economictimes.indiatimes.com/markets/stocks/news/tcns-clothing-shares-crash-19-as-aditya-birla-fashion-to-acquire-majority-stake/articleshow/100064452.cms">ET report.</a> “Unlike other mergers and acquisitions, we believe, this transaction does not need to be looked at from an earnings per share (EPS) accretion/dilution perspective or synergies. Key aspect is the fit of the brand and more importantly turnaround, given that TCNS had been lagging peers in recovery and underperforming for more than two years now. Only a successful turnaround of the same can create shareholder value,” said analysts at Nuvama Institutional Equities. TCNS is among key players in the women's ethnic wear market with brands such as W, Aurelia, Wishful and Elleven. However, analysts believe that the market remains highly crowded with a large section of unorganised players catering to highly price-conscious women consumers. “This possibly has led to a weak 2% revenue compound annual growth rate (FY19-23E) in TCNS operating at a premium pricing and &gt;65% gross margins. Therefore, we believe that TCNS’s earnings revival would be challenging and that building scale internally could have been a good alternative for ABFRL,” said a report by Motilal Oswal. ABFRL’s net debt may rise to highest in three years In the last couple of years, ABFRL has acquired brands like House of Masaba, Sabyasachi, Jaypore, Finesse International (Shantanu &amp; Nikhil) and several others. With the latest acquisition, analysts expect ABFRL’s net debt to rise to its highest level in the last three years. In fact, the company may also have to raise money to finance the acquisition. “We estimate ABFRL’s March 2023 net debt to be much higher than our initial forecasts – perhaps at its highest level in the past three years. Over and above, the company would now need to take on additional debt to finance the cash leg of the transaction, viz purchase of 51% stake for c.₹16.5 billion,” said a report by JM Financial. Some analysts say that the list of acquisitions by Aditya Birla Fashion is just burdening its portfolio with loss-making companies. “In the last few years, ABFRL has invested in multiple new businesses, with a long tail of businesses that are presently loss-making or yet to stabilise…TCNS’s acquisition may add to that long tail,” said a report by Motilal Oswal. On Monday, shares of ABFRL closed 3.38% lower at ₹206.95 while those of TCNS Clothing ended 19.99% lower at ₹416.75 SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/paytm-brokerages-looking-up-to-59-growth-in-one97-communications/articleshow/100070477.cms">Paytm shares surge 5% on sustained Q4 growth, brokerages see up to 59% upside</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/rail-vikas-nigam-marks-a-strong-journey-in-2023-share-price-of-68-to-140/slidelist/100069014.cms">From ₹68 to ₹140, this multibagger stock marks a strong journey in 2023</a>

Aditya Birla Fashion, TCNS Clothing’s shares tank on merger news; analysts say merger was not necessary

<ul><li><keyword id="2834772" type="General" weightage="20" keywordseo="aditya-birla-fashion" source="Orion">Aditya Birla Fashion</keyword> and Retail reported its highest ever quarterly sales in the April to June quarter.</li><li>The company also managed to turn its net loss of ₹352 crore to a net profit of ₹94 crore in a year.</li><li>The parent company of <keyword id="9538" type="General" weightage="20" keywordseo="pantaloons" source="Orion">Pantaloons</keyword> and <keyword id="15482" type="General" weightage="20" keywordseo="lifestyle" source="Orion">Lifestyle</keyword> brand stores now believes that it could keep this momentum in the next quarter as well.</li></ul><keyword id="6359480" type="General" weightage="20" keywordseo="aditya-birla" source="Orion">Aditya Birla</keyword> Fashion and Retail (ABFRL) — the parent company of Pantaloons and Lifestyle stores— reported its highest ever quarterly sales in Q1FY23. However, it hopes to break this record again in the second quarter, as it expects the festival sales to take off in October. Its Q1 operational revenues showed an over three-fold growth to ₹2,875 crore as compared to the same quarter last year. However, these revenues were also 39% higher than what they were in the Q1FY20 quarter, before the pandemic. Sequentially too its revenues grew by 23%. Thanks to bumper sales, it also turned around its net loss of ₹352 crore in the same quarter last year to a net profit of ₹94 crore. It attributed this to strong performance of portfolio brands, accerrated ecommerce and omnichannel strategy, and aggressive store expansion as it added 1,600 more. Its EBITDA (earnings before interest, taxes, depreciation, and amortization) margins expanded by 130 basis points (bps) over pre-Covid levels to reach 17.4% in Q1. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY23 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Operational Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,065 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹815 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,875 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹332 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹145 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹500 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹22 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹352 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹94 crore </td></tr></tbody></table>Source: Aditya Birla Fashion &amp; Retail (ABFRL) “Improved consumer confidence, value migration to the organized sector, and robust omnichannel presence led to strong growth and improved profitability. We expect this momentum to continue in upcoming quarters, with a further boost during the festive season,” the company said, in a statement. Aditya Birla Fashion and Retail sells multiple international brands in India — including Allen Solly, American Eagle Outfitters, Forever 21, Louis Philippe, Peter England, Ted Baker, <keyword id="8264" type="General" weightage="20" keywordseo="sabyasachi" source="Orion">Sabyasachi</keyword> and VanHeusen. Out of these, youth fashion company American Eagle also managed to triple its sales compared to the pre-covid levels. Meanwhile, premium brands The Collective and Mono brands have grown their business two-fold since pre-Covid. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brand </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 Performance </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">VanHeusen </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Highest ever quarterly sales </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Forever21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Improving margin with local sourcing </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jaypore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue grew 2.5x </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sabyasachi </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA grew 4x </td></tr></tbody></table>Source: Aditya Birla Fashion and Retail (ABFRL) investor presentation The company, in its quarterly report, mentioned that the inner wear and athleisure segment achieved its highest ever quarterly sales in Q1. This was driven by strong e-commerce presence and network expansion, triggered by net addition of 2,000 new trade outlets. Overall, Aditya Birla Fashion owns 29,000 outlets across brands SEE ALSO <a href="https://www.businessinsider.in/personal-finance/now-nris-can-pay-parents-utility-bills-and-childrens-school-fees-in-india/articleshow/93368504.cms">Now, NRIs can pay parents' utility bills and children's school fees in India</a> <a class="tout-title-link" href="https://www.businessinsider.in/finance/news/shaktis-gati-on-interest-rate-hike-to-continue/articleshow/93366502.cms">Shakti’s Gati on interest rate hikes to continue</a> <a href="https://www.businessinsider.in/business/corporates/news/telecom-and-consulting-sectors-sees-the-highest-rate-of-return-to-office-it-witnesses-the-least/articleshow/93342089.cms">Telcos, consultancies bring employees back to offices even as techies stay home</a>

Aditya Birla Fashion records its highest ever Q1 sales, hopes Q2 to be bigger

<ul><li>Aditya Birla Fashion &amp; Retail (ABFRL) recently bought Reebok’s India operations and brands like the House of Masaba.</li><li>Now, the company says that it will set up a new subsidiary that will directly sell to the consumer (D2C) the way Thrasio, Mensa and 10Club do.</li><li>Shares of ABFRL have surged 76% in the last one year.</li><li>The story has been corrected to reflect that the new D2C unit will not be a marketplace like Ajio or Tata Cliq, as mentioned earlier.</li></ul>After a series of partnerships with some of India’s top designers of ethnic fashion like Shantanu &amp; Nikhil, Tarun Tahiliani, <keyword id="667" type="General" weightage="20" keywordseo="ritu-kumar" source="Orion">Ritu Kumar</keyword> and <keyword id="8264" type="General" weightage="20" keywordseo="sabyasachi" source="Orion">Sabyasachi</keyword>, <keyword id="3378227" type="General" weightage="20" keywordseo="aditya-birla-fashion-and-retail" source="Orion">Aditya Birla Fashion and Retail</keyword> (ABFRL) is preparing to go directly to the consumer. The company has said that the new entity will build “a portfolio of distinct, new-age, digital brands across categories in fashion, beauty and other allied lifestyle segments” Kumar Mangalam Birla, one of India’s top billionaires with a <a href="https://www.forbes.com/sites/aayushipratap/2022/02/03/indian-billionaire-gautam-adani-becomes-asias-richest-person/?sh=7e7df8744d92">net worth of $90 billion</a>, is ready to take the next big stride into online retail. The board of ABFRL has approved the setting up of a new D2C subsidiary. The retailer has had a bunch of brands for a while but in the last two years, it’s been busy stacking up outfits from some of the top designers of wedding attire. Birla’s recent pacts with designers of ethnic wear <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Acquisition year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% stake in acquired firm </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">June 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jaypore &amp; TG Apparel &amp; Décor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">100% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">July 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shantanu &amp; Nikhil (S&amp;N) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">July 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Finesse Designs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">January 2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sabyasachi </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">February 2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tarun Tahiliani </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">33.5% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> <keyword id="13104055" type="General" weightage="20" keywordseo="what-is-d2c" source="Orion">What is D2C</keyword>? Direct to consumer is when a brand sells their products directly to consumers without selling through any third party retailers, wholesalers etc. Some of the popular D2C brands in the market are MyGlamm, Mamaearth, Wow Skin Science, BoAT, and Go Noise and the number of these brands in India has more than doubled in the last two years, according to consulting firm Bain and Company. Platforms selling D2C brands include Meesho, Tata Cliq, Myntra, Nykaa and Ajio. However, ABFRL’s business model will be similar to the New York-based e-commerce player Thrasio, which acquires small merchants and brands listed on Amazon marketplace. Thrasio has acquired more than 100 third party sellers or fulfilled by Amazon (FBA) businesses and is valued at $6 billion. Indian players like 10Club, Mensa Brands (founded by Myntra's former CEO Ananth Narayanan) and GlobalBees (founded by FirstCry founder Supam Maheshwari and Edelweiss' former executive Nitin Agarwal) have garnered the interest of investors. Notably, Mensa Brands is the <a href="https://www.businessinsider.in/business/startups/news/former-myntra-ceo-started-mensa-brand-in-may-and-its-already-worth-a-billion-dollars-with/amp_articleshow/87735832.cms">youngest Indian startup</a> to be valued over a billion dollars and 10Club raised the <a href="https://www.businessinsider.in/business/startups/news/bhavna-suresh-has-closed-indias-largest-seed-round-for-her-nine-month-old-startup-10club/amp_articleshow/83978841.cms">largest seed round</a> in Asia, last year. Even Thrasio is not willing to let go off this opportunity. The company will be looking to invest <a href="https://www.businessinsider.in/business/ecommerce/news/amazon-aggregator-thrasio-will-invest-half-a-billion-dollars-in-buying-indian-brands/amp_articleshow/88894791.cms">half a billion dollars</a> in the Indian market over the next few years. The combined revenue of all D2C retailers in India was $3 billion in 2020, and is likely to be $35 billion by 2025, according to a recent report by O3 Capital. However, ABFRL’s statement pegged the D2C opportunity at a whopping $100 billion by 2025. <div type="image" title="aditya birla fashion stocks" height="900" width="1200" msid="89347682" hostid="261"></div>Now, ABFRL has been selling fashion brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and many others through over 3,000 stores, for a while now. More recently ⁠— aside from the a series of pacts with makers of top dollar designer outfits ⁠— the company has also bought a <a href="https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/aditya-birla-fashion-to-buy-51-stake-in-masaba/articleshow/88892651.cms">51% stake in House of Masaba</a> (a clothing and cosmetics brand), and sportswear brand Reebok’s India operations. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Categories </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brands sold by Aditya Birla Fashions </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Luxury </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">The Collective, Ralph Lauren, Shantanu &amp; Nikhil, Sabyasachi, Tarun Tahiliani </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Super Premium </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Simon Carter, Hackett, Ted Baker, Jaypore, Polo </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Premium </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Louis Philippe, Allen Solly, VanHeusen, American Eagle </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sub-premium </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Peter England, Forever 21 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Value </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pantaloons, People </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mass </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Style Up </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>With this business proposition, Aditya Birla is looking to mint money out of the extensive ecommerce offerings created by Jeff Bezos through Amazon, Walmart through Flipkart, Mukesh Ambani and the Tata Group. Birla will use brands like these to sell the D2C brands it acquires to sell online. Ambani’s Reliance Retail has also been making big investments in e-tail including Ajio, a six-year old online marketplace that makes a bulk of its revenue from sale of fashion clothing. Tata’s product is called Tata Cliq, which sells products from Westside, Shoppersstop and other brands. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/textile-cigarette-metal-and-electric-batteries-sectors-stocks-up-budget-day/articleshow/89346157.cms">Textile, cigarette makers and others sector stocks that rallied since budget speech</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/gautam-adani-and-mukesh-ambani-are-now-richer-than-facebooks-mark-zuckerberg/slidelist/89338118.cms">Forbes shows Adani and Ambani are now richer than Facebook’s Mark Zuckerberg</a>

You Searched For "jaypore" and got 5 results

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