Aditya Birla Raises Stake in Goodview Fashion to 51% for ~₹127.42 Crore

On July 11, 2024, Aditya Birla Fashion and Retail Limited announced a significant increase in its stake in Goodview Fashion Private Limited (GFPL), raising its shareholding from 33.5% to 51%. This acquisition, achieved through the secondary purchase of a 17.5% equity stake from existing shareholders, has resulted in GFPL transitioning from an associate company to a subsidiary of Aditya Birla Fashion.

GFPL, established in 1996, specialises in the manufacturing and sale of ethnic couture fashion under the renowned brand “Tarun Tahiliani.” This strategic move aligns with Aditya Birla’s broader vision to strengthen its presence in the ethnic wear segment, which is experiencing robust demand in the Indian market.

The total cost of the acquisition was approximately ₹127.42 crores, reflecting the company’s commitment to expanding its portfolio. By acquiring 1,870 equity shares, Aditya Birla has solidified its control over GFPL, which is expected to enhance operational synergies and drive growth.

GFPL has shown impressive financial performance over the past three years. For the fiscal year ending March 31, 2024, GFPL reported a turnover of ₹148 crore with an EBITDA margin of 37.20%. This marks a significant increase from ₹104.58 crores in FY 2023 (EBITDA margin of 31.20%) and ₹63.50 crores in FY 2022 (EBITDA margin of 23.80%). Such consistent growth indicates a strong market position and operational efficiency, making the acquisition a strategically sound decision for Aditya Birla.

With this acquisition, Aditya Birla Fashion aims further to leverage GFPL’s established brand and market presence to enhance its offerings in the ethnic couture segment. The transition of GFPL to a subsidiary is expected to open up new avenues for growth and collaboration, ultimately benefiting the company’s overall strategy and strengthening its foothold in the fashion industry.

About Aditya Birla Fashion and Retail Limited

Aditya Birla Fashion and Retail  (ABFRL) was formed in 2015 through the consolidation of Aditya Birla Group’s branded apparel businesses, including ABNL’s Madura Fashion division, Pantaloons Fashion and Retail (PFRL), and Madura Fashion & Lifestyle (MFL).

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