ABFRL aims high
Aditya Birla Fashion and Retail Ltd (ABFRL) will buy a 51 per cent stake in fashion brand House of Masaba for Rs 90 crore. The acquisition is subject to definitive agreements, completion of closing conditions and the time for completion of the deal is two to three months.
“Through investment in brand ‘Masaba’, ABFRL will strengthen its play into fashion for young and digitally native consumers along with marking a foray into the branded beauty & personal care segment,” it said in a statement.
More products in offing
Brand Masaba is targeted to achieve annual revenues of around Rs 500 crore in the next five years. It will be scaled predominantly through the digital direct-to-consumer channel in order to leverage its connection with the youth and tech savvy consumers.
“Inspired by the ever-evolving, India-Proud Gen Z consumer, the brand will introduce multiple product extensions bringing Cosmetics, Personal Care, Athleisure & Home Decor to its portfolio. The House of Masaba already has established a strong foothold among the youth with a robust digital-first strategy and the tie-up with ABRFL will strengthen this position, making the brand future ready,” said House of Masaba founder Masaba Gupta.
Expects huge turnover
According to Ashish Dikshit, Managing Director, ABFRL House of Masaba is “a young, effervescent brand with a refreshing and innovative take on every lifestyle category”.
House of Masaba saw a revenue of Rs 16 crore, Rs 20 crore and Rs 14 crore, respectively from its apparel business in the last three years. It’s revenue in FY21 was impacted by the COVID-19 pandemic. It expects the FY22 revenue to touch Rs 30 crore. These do not include the revenue of the beauty business.
In 2009, House of Masaba was founded by Indo-Caribbean fashion designer Masaba. Masaba is popular for her quirky prints. She was also named in the Forbes 30 under 30 list in 2017.