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The board of Aditya Birla Fashion and Retail Ltd (ABFRL), in its April 1 meeting, has authorized the company’s management to evaluate the vertical demerger of the Madura Fashion & Lifestyle business from ABFRL to a separate listed company. I did.
The proposed demerger would enable the creation of two separately listed companies as independent growth engines with different capital structures and parallel value creation opportunities.
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The Madura Fashion & Lifestyle Business Segment (MFL) consists of four lifestyle brands: Louis Philippe, Van Heusen, Allen Solly and Peter England, as well as four casual wear brands. American Eagle & Forever 21, sportswear brand Reebok and Van Heusen’s innerwear business will be split into separate publicly traded companies.
“This portfolio is a long-term leader with a track record of delivering consistent revenue growth, profitability, strong free cash flow, and high returns on capital. “Subject to necessary approvals, the demerger will be carried out through the NCLT scheme of arrangement and all the shareholders of ABFRL will have identical shares in the new entity,” ABFRL said in a stock exchange filing. I will keep it.”
ABFRL is well positioned to raise growth capital within 12 months to inject strength to its balance sheet following completion of the proposed demerger and to pursue the significant growth opportunities that lie ahead. Stated.
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Kumar Mangalam Birla, Chairman, Aditya Birla Group, said:
and retail business has grown from five brands to a dynamic portfolio of more than 20 brands in two categories.
Across all lifestyle categories. The evolution of this portfolio seamlessly reflects changing consumption trends and encompasses all significant value creation opportunities.as
Platforms embark on the next transformational phase of growth and there is room for reassessment
Capital structure to optimize different parts of the portfolio.Moving towards greater simplicity
The streamlined architecture is designed to unlock clear opportunities for value creation.this
The strategic realignment is expected to significantly improve long-term stakeholder value. ”
Dr. Ashish Dikshit, Aditya Birla Fashion and Retail Ltd. Each of these businesses has always operated autonomously in its own capacity.
Dear CEOs. ” He further added, “India’s fashion and apparel sector is a $100 billion-plus sector and is expected to see double-digit long-term growth.” The simple structure positions the business for sustainable growth and value creation. ”
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