ABFRL Received Board Approval For the Demerger of Madura Fashion & Lifestyle Business

On April 01, 2024, the Board of Directors of Aditya Birla Fashion and Retail Ltd (ABFRL) authorised the company to evaluate the vertical demerger of the Madura Fashion & Lifestyle business from ABFRL into a separately listed company. The company added that the proposed demerger would allow the creation of two separately listed companies as independent growth engines with distinct capital structures and parallel value-creation opportunities.

The Madura Fashion & Lifestyle business segment (MFL) consists of four lifestyle brands viz Louis Phillippe, Van Heusen, Allen Solly & Peter England, along with casual wear brands viz. American Eagle & Forever 21, sportswear brand Reebok and the innerwear business under Van Heusen will be demerged into a separate listed entity.

The demerger will be implemented via an NCLT scheme of arrangement after necessary approvals. All the shareholders of ABFRL will have an identical shareholding in the newly formed entity. Following the demerger, the remaining ABFRL will concentrate on high-growth markets where tailwinds from a shift from unbranded to branded, premiumisation, the rise of super premium & luxury, and rapid growth in Gen Z-focused digital-first brands.

“Over the years, our fashion and retail business has grown from 5 brands in 2 categories to a dynamic portfolio of 20+ brands across all lifestyle categories. The evolution of this portfolio has seamlessly mirrored the shift in consumption trends, with a play encompassing all large value-creation opportunities. As the platform embarks on its next transformational phase of growth, there is scope to re-evaluate capital structures to optimise different parts of the portfolio. The move towards a more simplified and streamlined architecture is designed to unlock distinct opportunities for value creation. This strategic realignment is poised to significantly enhance long-term stakeholder value,” said, Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group.

“The restructuring will help bring in sharper focus anchored on a differentiated strategy aligned with the individual business segment. Each of these businesses has always been operated autonomously under respective CEOs.” said Mr Ashish Dikshit, MD, Aditya Birla Fashion and Retail Ltd.

About Aditya Birla Fashion and Retail Ltd

ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. The company is the first billion-dollar pure-play fashion powerhouse in India, with an elegant bouquet of leading fashion brands and retail formats. As of December 31, 2023, the company has a network of 4,753 stores across approximately 37,106 multi-brand outlets. On April 02, 2024, the ABFRL share price

opened at ₹232.85 and touched the day high of ₹247.40 at 10:23 AM.

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