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to-acquire-forever-21-in-india-for-26-mn/articleshow/53063010.cms

Aditya Birla Fashion to acquire Forever 21 in India for $26 mn

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http://economictimes.indiatimes.com/articleshow/53063010.cms?
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NEW DELHI: Aditya Birla Fashion and Retail (ABFRL) today said it will acquire
global clothing brand 'Forever 21' in the Indian market for USD 26 million (around
Rs 175.52 crore).

"The company has today executed a business transfer agreement with Diana
Retail and DLF Brands for acquisition of the business undertaking of Diana
Retail... under the Forever 21 brand and also through e-commerce channel on a
going concern basis, in the Indian market," ABFRL said in a BSE filing.
Diana Retail is the franchisee of Forever 21 brand in India.

Giving details of the transaction, the company said: "The transaction involved acquisition of the Forever 21
Undertaking of Diana Retail with effect from July 1 through a business transfer agreement not share transfer. The
consideration for acquisition is USD 26 million".

In May this year, Aditya Birla Fashion and Retail (ABFRL) announced that it will enter into a binding MoU with
Forever 21 to acquire its online and offline rights for the Indian market.

Forever 21 is among the fastest growing fashion retailers in the world with a network of more than 700 stores
worldwide. Its India operations reported a turnover of Rs 262 crore in 2015-16.

ABFRL was formed after the consolidation of the branded apparel businesses of Aditya Birla Group, comprising
Aditya Birla NuvoBSE -0.21 %, Madura Fashion division and ABNLs subsidiaries -- Pantaloons Fashion and
Retail Ltd and Madura Garments Lifestyle Retail Company Ltd -- in May 2015.

Post consolidation, PFRL was renamed as Aditya Birla Fashion and Retail, with over 7,000 points of sale in over
375 cities and towns.
https://yourstory.com/2016/07/abof-acquire-forever-21/

Aditya Birla Fashion and Retail (ABFRL) acquires global clothing


brand Forever 21 in the Indian market for USD 26 million (around
Rs 175.52 crore).

Fr
om (L-R): Prashant Gupta,President & CEO, abof.com; Kumar Mangalam Birla,
Chairman, Aditya Birla Group and Kedar Apshankar, Deputy CEO, Abof.com

The company has today executed a


business transfer agreement with
Diana Retail and DLF Brands for
acquisition of the business
undertaking of Diana Retail. Under
the Forever 21 brand and also
through e-commerce channel on a
going concern basis, in the Indian
market, ABFRL said in a BSE filing.
Diana Retail is the franchisee of Forever 21 brand in India. Giving
details of the transaction, the company said,

The transaction involved acquisition


of the Forever 21 Undertaking of
Diana Retail with effect from July 1
through a business transfer
agreement not share transfer. The
consideration for acquisition is USD
26 million.
In May this year, Aditya Birla Fashion and Retail (ABFRL)
announced that it will enter into a binding MoU with Forever 21 to
acquire its online and offline rights for the Indian market. Forever
21 is among the fastest growing fashion retailers in the world with
a network of more than 700 stores worldwide. Its India operations
reported a turnover of Rs 262 crore in 2015-16. ABFRL was
formed after the consolidation of the branded apparel businesses
of Aditya Birla Group, comprising Aditya Birla Nuvo, Madura
Fashion division and ABNLs subsidiaries -- Pantaloons Fashion and
Retail Ltd and Madura Garments Lifestyle Retail Company Ltd -- in
May 2015. Post consolidation, PFRL was renamed as Aditya Birla
Fashion and Retail, with over 7,000 points of sale in over 375
cities and towns.
Also read : IIT-Bombay alumni start an online fashion rental
platform on the lines of AirBnB

A month back, Aditya Birla Fashion and Retail (ABFRL) had said it
will be entering into a binding MoU with global clothing brand
Forever 21 to acquire its online and offline rights for the Indian
market.

The proposed acquisition is in line


with our strategic intent to create
the largest integrated branded
fashion player in the country. With
the acquisition of Forever 21 India
business, we aim to create a strong
foothold in the womenswear business
in the western wear segment.
Currently, the western womenswear
segment is growing at more than 20
per cent. The proposed acquisition
will further strengthen leadership
position of ABFRL in the branded
fashion space, Pranab Barua,
Managing Director, ABFRL had said.
Forever 21 expects that its partnership with ABFRL will help
establish it as one of the largest womenswear brand in the
country.

The young demographics of the


country and emergence of fast
fashion segment offers opportunity
for rapid growth for the brand, Jatin
Malhotra, Director, Global Expansion,
Forever 21 had said.

http://adityabirla.com/media/press-reports/aditya-birla-Fashion-buys-India-rights-
to-forever-21

ADITYA BIRLA FASHION BUYS INDIA RIGHTS TO


FOREVER 21
Priyanka Ghosh
Financial express
06 July 2016
Pays $26 million to acquire exclusive offline and online rights
In a $26 million dollar transaction, Aditya Birla Fashion and Retail (ABFRL) has
become the joint venture partner of US fast fashion major, Forever 21,
replacing DLF Brands. A statement released on Wednesday said that the
company was acquiring Forever 21s exclusive offline and online rights in the
country, including its existing store network.

Disclosures by ABFRL revealed Diana Retail, the current franchisee of Forever


21 reported revenues of Rs 262 crore in FY16, having more than doubled the
turnover in two years.

Sources said the apparel company, which currently has 12 stores across
Mumbai, Delhi and Bengaluru, had been dissatisfied with the pace of growth
and consequently opted to team up with ABFRL.

The company had originally planned for 50 stores in five years; in addition to
Chandigarh, where it has a presence, the US firm is planning stores in other
Tier II cities such as Coimbatore and Surat, sources said. Arvind Singhal,
managing director at consultancy firmTechnopak believes its a good fit.
ABFRL is one of the largest apparel players in the country and apparel is a
core category for the company, which was not the case with DLF Brands. For
a brand that is focused on teen fashion at moderate prices (Rs 800 -Rs 7,000)
and an aggressive expansion agenda, ABFRL is a more strategic fit, Singhal
observed.
At least three mall developers FE reached out to said Forever 21, one of the
first international brands that set up shop in the country is also one of the
best performing. Mukesh Kumar, senior vice president of Infiniti Mall said that
the brand has maintained its run rate or average trading density despite
competition from newer entrants like Zara, H&M and Gap. Fast fashion as a
category is growing at a healthy pace, maybe between 15 per cent and 20
per cent and within that, Forever 21 is definitely among the top three or four
brands, Kumar added.

Infiniti Mall houses Forever 21s first store in India. Sources from mall
development companies said in some locations, Forever 21 clocks in higher
trading density than industry major, Zara.

Sector specialists pointed out that although the exact contours of the deal
have not been revealed, it would be safe to assume that in keeping with its
DNA, ABFRL has signed a long term partnership with the US fashion brand,
probably spanning more than a decade. Unlike DLF Brands, ABFRL has
manufacturing units that could become sourcing hubs for Forever 21.

While the US firm also has its own e-commerce platform, it currently sells its
clothes and accessories through the fashion portal Myntra.

How exactly the online channel will work now remains unclear but as industry
watchers point out, the brands online sales account for a minuscule 4 per
cent of its total sales.

Initially, the JVbetween Forever 21 and DLF brandswas pitch perfect;


Forever 21 was to occupy space at a competitive rent in DLFs own malls. But
over a period of time, it turned out that DLFs malls were not always the most
lucrative shopping destinations.
That meant Forever 21 needed to have a different expansion plan, given that
competing brands like H&M and Gap are aggressively multiplying store
presence.

This is the third major brand that DLF Brands has let go. Others include
Mango and Sephora. At the moment Mothercare, Sunglass Hut and Claires are
the prominent international brands that DLF still has under its umbrella. DLF
Brands did not participate in the story so its game plan remains unclear.

http://www.indianweb2.com/2016/07/06/aditya-birla-fashion-acquires-forever-21-
india-26m-create-strong-foothold-womenswear-business/

Aditya Birla Fashion Acquires Forever 21 in


India for $26M to Create a Strong Foothold
in the Womenswear Business
Merger & Acquisition
by Suman Chaudhary - Jul 6, 201

Aditya Birla Fashion and Retail (ABFRL) has announced that it will acquire global
clothing brand Forever 21 in the Indian market for $26 million (around Rs.175.52 crore).

The company has on Tuesday executed a business transfer agreement with Diana
Retail and DLF Brands for acquisition of the business undertaking of Diana Retail. Under
the Forever 21 brand and also through eCommerce channel on a going concern basis,
in the Indian market, ABFRL said in a BSE filing.

Diana Retail is the franchisee of Forever 21 brand in India. Sharing details of the
acquisition, the company said: The transaction involved acquisition of the Forever 21
undertaking of Diana Retail with effect from 1 July through a business transfer
agreement not share transfer.

Advertisement

In May this year, ABFRL announced its plans to enter into a binding MoU with Forever
21 to acquire its online and offline rights for the Indian market.

Forever 21 is among the fastest growing fashion retailers in the world with a network of
more than 700 stores worldwide. Its India operations reported a turnover of Rs.262 crore
in 2015-16.

ABFRL was formed after the consolidation of the branded apparel businesses of Aditya
Birla Group, comprising Aditya Birla Nuvo, Madura Fashion division and ABNLs
subsidiariesPantaloons Fashion and Retail Ltd and Madura Garments Lifestyle Retail
Company Ltd in May 2015.

Post consolidation, PFRL was renamed as Aditya Birla Fashion and Retail, with over
7,000 points of sale in over 375 cities and towns.

With the acquisition of Forever 21 India business, ABFRL aims to create a strong
foothold in the womenswear business in the western wear segment. Currently, the
western womenswear segment is growing at more than 20 per cent. The proposed
acquisition will further strengthen leadership position of ABFRL in the branded fashion
space.

The young demographics of the country and emergence of fast fashion segment offers
opportunity for rapid growth for the brand, said Jatin Malhotra, Director, Global
Expansion, Forever 21.

http://www.business-standard.com/article/companies/aditya-birla-fashion-buys-
india-rights-of-forever-21-116052600015_1.html
Aditya Birla Fashion buys India rights of Forever 21

Raghavendra Kamath | Mumbai May 26, 2016 Last Updated at 00:35 IST

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Aditya Birla Fashion and Retail, part of Aditya Birla Group, has acquired the rights for
global fashion chain Forever 21 in the country for an undisclosed sum.

Forever 21 had a three year old tie up with DLF Brands and wanted to exit the
partnership for a much aggressive play in the country, said sources. Myntra was also in
talks to buy the rights of Forever 21, reports said earlier.

Aditya Birla Fashion has signed a memorandum of understanding (MoU) with the US
based Forever 21 to acquire its exclusive online and offline rights for Indian market and
its existing store network in India from the current franchisee Diana Retail, the company
said on Wednesday in a release.

Pranab Barua, managing director of ABFRL said, "The proposed acquisition is in line
with our strategic intent to create the largest integrated branded fashion player in the
country. With the acquisition of Forever 21 India business, we aim to create a strong
foothold in the womenswear business in the western wear segment. Currently, the
western womenswear segment is growing at more than 20 per cent. The proposed
acquisition will further strengthen leadership position of ABFRL in the branded fashion
space."

Forever 21 entered the country in 2010 through a Middle East-based group Sharaf
Retail, but could not scale up. In 2013, it forged a partnership with DLF Brands to open
40-50 stores in five years in the country, but could not open stores as planned.

Jatin Malhotra, director, global expansion, Forever 21 said: "Forever 21 has built a very
strong franchise in India in the last few years and has already become a brand of choice
for fashion conscious women. The young demographics of the country and emergence
of fast fashion segment offers opportunity for rapid growth for the brand. The partnership
of Forever 21 and ABFRL will help establish Forever 21 as one of the largest
womenswear brand in the country".

Founded in 1984, Forever 21 operates more than 730 stores in 48 countries with
retailers in the United States, Australia, Brazil, Canada, China, France, Germany and
others. Forever 21 has brands like Forever 21, XXI Forever, Love 21 and Heritage in its
portfolio.

http://indiatoday.intoday.in/story/aditya-birla-fashion-to-acquire-forever-21-in-
india-for-$26-mn/1/708097.html

Aditya Birla Fashion to acquire


Forever 21 in India for $26 mn

New Delhi, Jul 5 (PTI) Aditya Birla Fashion and Retail (ABFRL) today said it will
acquire global clothing brand Forever 21 in the Indian market for USD 26 million
(around Rs 175.52 crore).

"The company has today executed a business transfer agreement with


Diana Retail and DLF Brands for acquisition of the business undertaking of
Diana Retail... under the Forever 21 brand and also through e-commerce
channel on a going concern basis, in the Indian market," ABFRL said in a
BSE filing.

Diana Retail is the franchisee of Forever 21 brand in India.

Giving details of the transaction, the company said: "The transaction


involved acquisition of the Forever 21 Undertaking of Diana Retail with
effect from July 1 through a business transfer agreement not share
transfer. The consideration for acquisition is USD 26 million".

In May this year, Aditya Birla Fashion and Retail (ABFRL) announced that it
will enter into a binding MoU with Forever 21 to acquire its online and
offline rights for the Indian market.

Forever 21 is among the fastest growing fashion retailers in the world with
a network of more than 700 stores worldwide. Its India operations
reported a turnover of Rs 262 crore in 2015-16.

ABFRL was formed after the consolidation of the branded apparel


businesses of Aditya Birla Group, comprising Aditya Birla Nuvo, Madura
Fashion division and ABNLs subsidiaries -- Pantaloons Fashion and Retail
Ltd and Madura Garments Lifestyle Retail Company Ltd -- in May 2015.

Post consolidation, PFRL was renamed as Aditya Birla Fashion and Retail,
with over 7,000 points of sale in over 375 cities and towns. PTI SVK JM ABK

This is unedited, unformatted feed from the Press Trust of India wire.

Read more at: http://www.dealstreetasia.com/stories/aditya-birla-46612/

India: Aditya Birla Fashion and Retail completes planned acquisition of Forever 21
Aditya Birla Fashion and Retail (ABFRL) will acquire the Indian business of US-based clothing
brand Forever 21 from Diana Retail Pvt. Ltd. for Rs.175 crore ($26 million). Diana Retail is the
local franchise partner of Forever 21. The transaction involved acquisition of the Forever 21
Undertaking of Diana Retail from July 1 through a business transfer agreement not share
transfer. The consideration for acquisition is $26 million, the company said in a filing with the
Bombay Stock Exchange. The Forever 21 business will form part of ABFRLs Madura Fashion &
Lifestyle division. ABFRL was formed after the consolidation of the branded apparel businesses
of the Mumbai-based Aditya Birla Group, one of Indias largest conglomerates. It now has a
presence in 375 Indian cities. Forever 21 is among the fastest growing fashion retailers in the
world with a network of more than 700 stores worldwide. The deal will help ABFRL gain more
women customers, the company had said earlier. With the acquisition of Forever 21 business,
we aim to create a strong foothold in the womenswear business in the western wear segment,
which is currently growing at 20 per cent, Pranab Barua, managing director, ABFRL, said in May.
ABFRL had announced in May that it will enter into a deal with Forever 21 to acquire its online
and offline rights for the Indian market.

Read more at:


http://economictimes.indiatimes.com/articleshow/52435009.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Aditya Birla Fashion and Retail to acquire Forever 21 India business


NEW DELHI: Aditya Birla Fashion and Retail Limited (ABFRL) on Wednesday said it is acquiring the online and
offline rights of American fast-fashion brand Forever 21 in the Indian market, third time the US fashion brand is
changing its India partner.
"The Board of Directors of Aditya Birla Fashion and Retail Limited ['ABFRL'] today in-principally approved a
proposal to enter into a Binding Memorandum of Understanding [MoU] with Forever 21 to acquire its exclusive
online and offline rights .. Forever 21, for the Indian market and its existing store network in India from the current
franchisee," a statement from Aditya Birla Fashion said.

Currently, a joint venture between DLF Brands and the US company operate 10 brick-and-mortar and the
company sells online through fashion portal Myntra. It is unclear what happens to the Myntra online partnership
once Aditya Birla Fashion signs deal with Forever 21 that involves both offline and online rights for India.

Forever 21, a fashion brand targeted at teens and young adults, entered India half a decade ago and has
changed a partner already before tying up with DLF Brands. Analysts say the DLF Brands-Forever 21 JV hasn't
been able to scale up its business like global rivals such as Spanish brand Zara. Flipkart-owned online fashion
store Myntra was also in advanced talks to manage the local retail chain of Forever 21, ET had reported earlier.
"With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear
business in the western wear segment. Currently, the western womenswear segment is growing at more than 20
per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion
space," said Pranab Barua, managing director at ABFRL.

Read more at:


http://economictimes.indiatimes.com/articleshow/52435009.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

http://www.yosuccess.com/blog/aditya-birla-fashion-retail-triumphs-myntra-
acquires-forever-21-26-million/
So the latest news is that Aditya Birla Fashion and Retail or as they like to
call themselves ABFRL, has acquired the global clothing brand Forever
21 in the Indian market for $26 Mn (that is 175.52 crores approx).

They have executed a business transfer (not share transfer) agreement


with Diana Retail and DLF Brands for the acquisition of the business
undertaking of Diana Retail with effect from July 1st of 2016. Diana Retail is
the franchisee of Forever 21 brand in India.

As per the BSE filing by ABFRL, the transfer includes the acquisition of, all
of Forever 21 brand including their eCommerce channel that operates in
the Indian market, which will now become a part of ABFRLs Madura
Fashion & Lifestyle division.

The news that was first announced by ABFRL in May this year, finally saw
the daylight when the Board of Directors of ABFRL in-principally approved
the proposal to enter into a binding Memorandum of Understanding [MoU]
with Forever 21. This MoU states in detail, the acquisition of the exclusive
online and offline rights of the global brand Forever 21 for the Indian
market along with their existing store network in India from their current
franchisee i.e. Diana Retail Private Limited.

Although, the details of the deal have not been disclosed, but keeping in
mind the longer vision that both the companies hold, it is being assumed
that they have signed a long-term partnership together that probably
spans to more than a decade.

This announcement on the 6th of July boosted Aditya Birla Fashions stock
prices to end with gains of nearly 1.29% at 145.45 on the BSE, and further
rose to a 2.34% growth to 148.85 on the 7thof July as well. Aditya Birla
Fashions revenue stands at 1442 crores, and Diana Retails revenue was
at 262 crores (2015-16).

Interestingly, Flipkart-owned online fashion store Myntra was also in talks


to buy the rights of Forever 21, as well. They were in advanced talks to
manage the local business of the US fashion retail chain.

Myntra, since a while was looking at ways to make an entry into offline
retailing and was also exploring the possibilities of opening its branded
offline stores, and with such moves, the eCommerce firm was trying to de-
risk their business from being online-only focus brand. And Forever 21
opportunity would have helped them gain the desired momentum.

In fact, handshakes had also happened between the two parties and the
documentation was also happening.

But then ABFRL came and stole the show, and acquired the rights for
global fashion chain Forever 21 in the country from DLF Brands.

What factors led to the acquisition of Forever 21?

Forever 21s perspective

Founded in 1984, Forever 21 Inc is the 5th largest speciality fashion retailer
of womens, mens and kids clothing and accessories, based in Los
Angeles (California). It is most known for offering the hottest and latest
fashion trends at a great value to consumers.

Globally, Forever 21 operates more than 730 stores in 48 countries with


retailers in the United States, Australia, Brazil, Canada, China, France,
Germany, Hong Kong, India, Israel, Japan, Korea, Latin America, Mexico,
Philippines and United Kingdom.

Forever 21 had entered the India market through the franchise route in
2011. It had partnered with Dubai-based Sharaf Retail, but since the
business failed to scale up in the next two years; the Dubai company was
asked to close down the lone store in New Delhi in early 2013.
Post that, Forever 21 cancelled their franchise agreement with them,
formed a joint venture with DLF Brands and opened ten stores in the
National Capital Region (NCR), Mumbai, Pune, Bangalore, Thane and
Hyderabad.

Even after working along with its Indian counterpart DLF for around three
years, the apparel company Forever 21 that then had 12 stores across
Mumbai, Delhi and Bangalore, had been dissatisfied with the pace at
which they were growing.

Initially, the JV between Forever 21 and DLF brands was being noted as a
pitch perfect partnership, and Forever 21 was to occupy a space at a
competitive rent in DLF owned malls.

The company had originally planned for 50 stores in five years; in addition
to Chandigarh, where it already had a presence, the US firm also wanted
to expand to other Tier II cities such as Coimbatore and Surat, as well.

But over the period of time, Forever 21 realised that DLFs malls were not
always the most lucrative shopping destinations for the consumers.

Even after being amongst the top three or four brands in the fast fashion
space, being one of the best performing international brand in India and
even after maintaining its run rate or average trading density (which was
much higher than the industry majors) despite competition from newer
entrants like Zara, H&M and Gap; Forever 21 still highly lacked the needed
partner, to reach where it aimed to!

They wanted an aggressive play in the country to compete with brands


like H&M and Gap, who were aggressively multiplying their store
presence. They clearly werent getting that from DLF, which meant DLF
had to go!

And consequently Forever 21 opted to team up with ABFRL!

ABFRLs perspective

Aditya Birla Fashion and Retail (ABFRL) was formed after the consolidation
of the branded apparel businesses of Aditya Birla Group that included
Aditya Birla Nuvo Ltds (ABNLs) Madura Fashion division and ABNLs
subsidiaries Pantaloons Fashion & Retail Limited (PFRL) and Madura
Garments Lifestyle Retail Company Limited (MGLRCL), in May 2015. This
consolidation created Indias largest pure-play Fashion and Lifestyle
Company with a strong bouquet of leading fashion brands and retail
formats and annual sales of 5290 crores.

Post the consolidation, PFRL was renamed to Aditya Birla Fashion and
Retail (ABFRL), with over 7,000 points of sale in over 375 cities and towns.

Unlike DLF brands, ABFRL is known to be one of the largest apparel


players in the country, with apparel as their core category for the
company, and also has manufacturing units that could become sourcing
hubs for Forever 21 as well.

Forever 21 was a brand that many women had fallen in and out of love
with. They were the perfect fit for the young, cash-strapped customers
who wanted to get their hands on stylish clothing.

Ultimately, the name Forever 21 says it all!

To a young woman who cant legally drink yet, turning 21 is the dream.
This cheap, short-lived fashion doesnt bother this consumer.

And Forever 21 targets exactly that girl, who is not yet interested in
purchasing quality clothes; but instead, just wants to look good. And when
that girl moves on, another crop of girls entering that age group, enter
Forever 21s target audience.

Additionally, on the business end, as per a recent poll conducted by


Goldman Sachs and Teen Vogue amongst its fashion influencers between
the ages 13 and 29, it was noticed that, these age segment of girls not
only like Forever 21 they love it!

Beating other fast-fashion majors like Urban Outfitters and H&M; Forever
21 came in at number 8 on the list of brands that matter to fashion-
forward It Girls, and also topped the Love List as well.

Keeping all these factors in mind, Forever 21 would have been the perfect
fit for ABFRL to maintain its dominance in the fast fashion space. Along
with that, this partnership would also help them in expanding their market
in the foreign territory by using Forever 21s expertise and connects!

End Note

The acquisition by ABFRL is being noted as a strategic intent to position


themselves as the largest integrated branded fashion player in the
country, more specifically in the womens wear segment, which is
currently growing at more than 20%.
While on the other end, since Forever 21 has built a very strong franchise
in India in the last few years and has already become a brand of choice for
fashion focused women; it aims to become one of the largest womens
wear brands in the country too.

And the emergence of the young demographics of the country along with
fast fashion segment, offers them the perfectly blended opportunity for
rapid growth for the brand as well.

Hence, for a brand like Forever 21, that is focused on teen fashion at
moderate prices (800 -7000) and an aggressive expansion agenda,
ABFRL is more than strategic and perfect fit.

And, thus the partnership of Forever 21 and ABFRL is a clear win-win!

http://www.livemint.com/Companies/OJTcNuoSiHSexdznAEmmzK/Aditya-Birla-
Fashion--Retail-posts-Rs109-crore-loss-for-Q4.html

Aditya Birla Fashion & Retail posts


Rs109 crore loss for Q4
ABFRLs board approved acquisition of online and offline rights of global brand Forever 21
for the Indian market

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PTI
A file photo of a store of Pantaloons, which is a part of ABFRL. Photo: Mint

New Delhi: Aditya Birla Fashion and Retail (ABFRL), formerly known as Pantaloons
Fashion, on Wednesday reported a net loss of Rs.109.82 crore on standalone basis for the
January-March quarter of 2015-16 against a loss of Rs.63.78 crore in the same period last
year.

Besides, the companys board today approved acquisition of online and offline rights of
global brand Forever 21 for the Indian market.

ABFRL reported net sales of Rs.1,430.99 crore during the quarter under review against net
sales of Rs.450.51 crore in the same quarter of previous fiscal.

Meanwhile, the company said that its results are not comparable as Aditya Birla Nuvo and
another group firm Madura Garments Lifestyle Retail Ltd were merged into listed firm
Pantaloons Fashion.

The figure of the quarter ended March 31, 2016 and December 31, 2015 and nine months
ended December 31, 2015 and year ended March 31, 2016 include figures of the demerged
undertakings which has been transferred to the company from April 1, 2015 and therefor to
that extent are not comparable with those of the previous fiscal, said ABFRL.
For 2015-16, ABFRL has a standalone net loss of Rs.104.14 crore. It had a net loss
of Rs.228.14 crore in the previous fiscal. Its net sales were at Rs.6,017.80 crore in 2015-16
against Rs.1,816.88 crore in 2014-15.

In a separate filing, ABFRL informed: The board of directors of the company, at its meeting
held today has in principal approved a proposal to enter into a binding MoU with Forever 21
to acquire its exclusive online and offline rights of the global brand Forever 21 for the Indian
market and its existing store network in India from the current franchise Diana Retail Pvt
Ltd.

However, it also added: The proposed acquisition is subject to necessary statutory approvals
from and signing of definitive agreements.

Shares of the company today settled at Rs.146.65 at BSE, up 0.17% from previous close.

https://www.vccircle.com/aditya-birla-fashion-buys-india-business-forever-21-26-
mn/
ditya Birla Fashion buys India
business of Forever 21 for
$26 mn
By Debjyoti Roy

9 months ago
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Aditya Birla Fashion and Retail Ltd said on Tuesday it has


acquired the Indian business of fashion chain Forever 21 from
Diana Retail Pvt Ltd, the US-based companys local franchise
partner, for $26 million (Rs 175 crore).

The acquisition will help the company create a strong foothold


in the womens western wear segment, the retail arm of the
diversified Aditya Birla Group said in a stock-exchange filing.

Diana Retail, promoted by DLF Brands Ltd, was the franchisee


for Forever 21 for three years. It operated 12 stores and also
sold products online. Diana Retail reported net sales of Rs 262
crore in 2015-16.

Aditya Birla Fashion said the Forever 21 business will form part
of its Madura Fashion & Lifestyle division.

The Indian company had in May signed a memorandum of


understanding with Forever 21 to acquire the online and offline
rights for the Indian market and its store network in the country.

Forever 21, which competes with Zara and Swedens H&M,


entered India in 2010 through a Middle East-based group Sharaf
Retail but could not scale it up. In 2013, it tied up with DLF
Brands to open nearly 50 stores in five years in the country.
However, it didnt open as many stores as planned.

Based in Los Angeles, Forever 21 sells fashion merchandise for


men, women and kids. The company, which was launched in
1984, operates almost 700 stores in 48 countries with retailers
in the US, Australia, Brazil, Canada, China, France, Germany and
others. Besides Forever 21, the brand portfolio also includes
Love 21 and Heritage.

Aditya Birla Group had last year consolidated its branded


apparel business under its lifestyle retail firm Pantaloons
Fashion and Retail India Ltd and renamed it as Aditya Birla
Fashion & Retail, creating Indias top branded clothing company
by revenue and number of sales outlets.

The company posted net sales of Rs 6,060 crore in 2015-16. It


has been in the red for the past couple of years, due mainly to
the loss-making Pantaloons business.

HTTP://WWW.ADITYABIRLA.COM/MEDIA/PRESS-
RELEASES/ABFRL-SIGNS-MOU-FOREVER-21-INDIA-
BUSINESS

ADITYA BIRLA FASHION AND RETAIL SIGNS MOU WITH


FOREVER 21 FOR INDIA BUSINESS
Mumbai,
25 May 2016

Indias fashion power-house, Aditya Birla Fashion and Retail Limited plans to
unfold a new chapter in the Indian retail landscape, with its proposal to tie-up
with the global brand Forever 21 for the Indian market. Forever 21 is one of
the fastest growing fashion retailers in the world with a large network of more
than 700 stores across the globe.

The Board of Directors of Aditya Birla Fashion and Retail Limited [ABFRL]
today in-principally approved a proposal to enter into a Binding Memorandum
of Understanding [MoU] with Forever 21 to acquire its exclusive online and
offline rights to the global brand - Forever 21, for the Indian market and its
existing store network in India from the current franchisee i.e. Diana Retail
Private Limited. The proposed acquisition is subject to necessary statutory
approvals and signing of definitive agreement(s).

Remarks Mr. Pranab Barua, Managing Director, ABFRL, The proposed


acquisition is in line with our strategic intent to create the largest integrated
branded fashion player in the country. With the acquisition of Forever 21 India
business, we aim to create a strong foothold in the womenswear business in
the western wear segment. Currently, the western womenswear segment is
growing at more than 20%. The proposed acquisition will further strengthen
leadership position of ABFRL in the branded fashion space.

Comments Mr. Jatin Malhotra, Director, Global Expansion, Forever 21,


"Forever 21 has built a very strong franchise in India in the last few years and
has already become a brand of choice for fashion conscious women. The
young demographics of the country and emergence of fast fashion segment
offers opportunity for rapid growth for the brand. The partnership of Forever
21 and ABFRL will help establish Forever 21 as one of the largest
womenswear brand in the country.

About Aditya Birla Fashion and Retail Ltd. (formerly known as


Pantaloons Fashion & Retail Limited)
Aditya Birla Fashion and Retail Ltd. (ABFRL) was formed after the
consolidation of the branded apparel businesses of Aditya Birla Group
comprising Aditya Birla Nuvo Ltd's (ABNL) Madura Fashion division and
ABNL's subsidiaries Pantaloons Fashion & Retail Limited (PFRL) and Madura
Garments Lifestyle Retail Company Limited (MGLRCL) in May 2015. Post the
consolidation, PFRL was renamed as Aditya Birla Fashion and Retail Ltd.
ABFRL is India's No 1. Fashion Lifestyle entity, growing at a rate in excess of
20 percent over the last 5 years. ABFRL altogether hosts India's largest
fashion network with over 7,000 points of sale across over 375 cities and
towns, which include more than 2,000 exclusive ABFRL brand outlets.

About Forever 21
Forever 21, Inc., headquartered in Los Angeles, California, is a fashion retailer
of womens, mens and kids clothing and accessories and is known for
offering the hottest, most current fashion trends at a great value to
consumers. Forever 21 is ranked as the 5th largest speciality retailer in the
United States. Founded in 1984, Forever 21 operates more than 730 stores in
48 countries with retailers in the United States, Australia, Brazil, Canada,
China, France, Germany, Hong Kong, India, Israel, Japan, Korea, Latin
America, Mexico, Philippines and United Kingdom. Forever 21 has brands like
Forever 21, XXI Forever, Love 21 and Heritage in its portfolio.

Disclaimer: Certain statements in this Press Release may not be based on


historical information or facts and may be forward looking statements
within the meaning of applicable securities laws and regulations, including,
but not limited to, those relating to general business plans & strategy of the
Company, its future outlook & growth prospects, future developments in its
businesses, its competitive & regulatory environment and management's
current views & assumptions which may not remain constant due to risks and
uncertainties. Actual results could differ materially from those expressed or
implied. The Company assumes no responsibility to publicly amend, modify
or revise any statement, on the basis of any subsequent development,
information or events, or otherwise. This Press Release does not constitute
a prospectus, offering circular or offering memorandum or an offer to acquire
any shares and should not be considered as a recommendation that any
investor should subscribe for or purchase any of the Companys shares. The
financial figures in this Press Release have been rounded off to the nearest
one Crore. The financial results are consolidated financials unless otherwise
specified.