Aditya Birla Fashion Eyes 49% In Bestseller India

Aditya Birla Fashion Eyes 49% In Bestseller India

The Aditya Birla Group is in talks with Danish apparel company Bestseller A/S to acquire a significant stake in the Indian arm of the fashion house that owns Vero Moda, Jack & Jones, and Only, according to media reports. Aditya Birla Fashion & Retail is in "active discussions" to acquire 49% stake in Bestseller India, and is offering attractive valuations, according to one of the three industry executives aware of the development.

Talks with Bestseller are part of Aditya Birla Fashion's strategy to enhance its portfolio of international brands, as the company seeks to cater to the changing taste of theurban consumer. The fashion business of the Aditya Birla Group is under pressure from investors to stitch together a winning formula, reflecting the latest trends in India's fashion scene that has been redefined in the past few years by Zara and H&M. Aditya Birla Fashion owns top labels in formal menswear, such as Louis Philippe, Van Heusen, and Allen Solly. It also owns the Pantaloons department stores. The company said it is a "market leader" in India's branded apparel market, and that it has a "rich portfolio of the largest and the most profitable brands in the country".

Harminder Sahni, founder of retail consultancy Wazir Advisors, said that the group had "overall good and stable business" in the segments that are not competing with global labels. "Aditya Birla Group sees the value being created by Reliance Brands and Arvind Brands because of Tommy Hilfiger, Gap, Children's Place and Sephora," Sahni said. "Now it is waking up to the reality that there is value in running international brands."