Business News Fashion

For Rs. 1,650 crore, Aditya Birla Fashion will purchase a 51% share in TCNS Clothing.

Aditya Birla Fashion and Retail will acquire 51 per cent stake in ethnic wear brand TCNS clothing, parent company of W, Aurelia, Wishful, Folksong and Elleven for Rs 1,650 crore, the former said in a BSE filing.

The acquisition is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points, ABFRL said.

The deal will take place through acquisition of the founding promoter’s stake through a SPA and a conditional public open offer. This will be followed by a merger between TCNS and ABFRL.

“The value of the promoter stake and open offer consideration for TCNS is ~ Rs. 1650 Cr. for 51% stake, making this one of the largest deals in the Indian fashion space.”

On merger, shareholders of TCNS will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.

“For ABFRL, the TCNS deal is indeed a significant milestone as it complements our existing portfolio of exceptional brands across the entire spectrum of Indian fashion. 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,” commented Kumar Mangalam Birla, Chairman, Aditya Birla Group.

With this acquisition ABFRL expects its ethnic wear portfolio to reach Rs. 5,000 crore in the next 3 years.

TCNS Clothing has the largest women’s wear distribution network with 4,100 outlets. The company recorded a turnover of Rs 933 crore and its profit after tax stood at Rs 10.58 crore as on December 31, 2022.

As per media reports, retail majors such as Reliance Retail, Nykaa and Trent were also in the race to acquire the popular ethnic wear brand.



About Author

Leave a comment

Your email address will not be published. Required fields are marked *

You may also like


How fast fashion can cut its staggering environmental impact

How fast fashion can cut its staggering environmental impact Clothes were once used until they fell apart — repaired and

Landmark treaty on plastic pollution must put scientific evidence front and center

Textiles fit into two broad categories: natural and synthetic. The production of those such as cotton and wool, which are
Wordpress Social Share Plugin powered by Ultimatelysocial
error: Content is protected !!