ABFRL Acquires 51% Stake in TCNS Clothing
29 September 2023, Mumbai
In a recent ET REPORT, In a strategic move that solidifies its position as a promoter in the women's apparel space, Aditya Birla Fashion Retail Ltd (ABFRL) has successfully concluded its acquisition of a 51 percent stake in TCNS Clothing.
Nuances
This acquisition, which was announced in a regulatory filing late Tuesday, confers control of TCNS upon ABFRL. Additionally, TCNS has now assumed the status of a subsidiary of ABFRL, and in accordance with SEBI Listing Regulations, it will be classified as a material subsidiary of the company.
About TCNS
TCNS Clothing is the parent company of popular women's apparel brands such as W, Aurelia, Wishful, Folksong, and Elleven. This acquisition is expected to boost ABFRL's ethnic wear portfolio, which is already one of the largest in India.
The acquisition is also seen as a positive development for TCNS Clothing, as it will give the company access to ABFRL's vast resources and expertise in fashion retail. This could help TCNS Clothing to accelerate its growth and expand its reach in both domestic and international markets.
Favourable deal; Overall, the acquisition of TCNS Clothing by ABFRL is a win-win proposition for both companies.
It is a significant development for the Indian fashion industry, as it consolidates the position of ABFRL as a leading player in the women's apparel space.
