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com/industry/services/retail/aditya-birla-fashion-
to-acquire-forever-21-in-india-for-26-mn/articleshow/53063010.cms
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/
Fr
om (L-R): Prashant Gupta,President & CEO, abof.com; Kumar Mangalam Birla,
Chairman, Aditya Birla Group and Kedar Apshankar, Deputy CEO, Abof.com
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.
http://adityabirla.com/media/press-reports/aditya-birla-Fashion-buys-India-rights-
to-forever-21
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.
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 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.
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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
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).
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.
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.
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.
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.
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).
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).
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.
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.
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!
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.
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.
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.
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
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.
http://www.livemint.com/Companies/OJTcNuoSiHSexdznAEmmzK/Aditya-Birla-
Fashion--Retail-posts-Rs109-crore-loss-for-Q4.html
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 said the Forever 21 business will form part
of its Madura Fashion & Lifestyle division.
HTTP://WWW.ADITYABIRLA.COM/MEDIA/PRESS-
RELEASES/ABFRL-SIGNS-MOU-FOREVER-21-INDIA-
BUSINESS
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).
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.