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15 December 2021, Mumbai:
Analysts expect Aditya Birla Fashion and Retail Ltd. (ABFRL) foray into the fast-growing sport segment with the tie-up with Reebok to aid the overall growth of the company. That pushed up its stock prices.
Aditya Birla Fashion acquired exclusive online and offline rights of Reebok for the Indian market from the Authentic Brands Group for Rs 75-100 crore, according to an exchange filing.
The long-term licensing agreement grants ABFRL exclusive rights to distribute and sell Reebok products through wholesale, e-commerce, and Reebok-branded retail stores in India and other Asian countries.
"Over the last few years, this segment [sports and activewear] has been growing rapidly on the heels of rising income levels, increased health consciousness, and the adoption of active lifestyles by young Indians," the filing said.
"This segment is expected to grow to $13 billion by FY24 at an annual growth rate of about 14%." Analysts, too, expect the strong presence of Reebok over the last two decades to aid ABFRL's Ebitda. The stock rose as much as 3.41% intraday to Rs 293 apiece before erasing the gains. Over the past two sessions, it has risen over 6%.
BloombergQuint
(The news article has not been edited by DFU Publications staff)
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