The Aditya Birla Group has entered into a “binding term sheet” agreement to acquire a 51% stake in “House of Masaba Lifestyle Pvt Ltd”, a move that will strengthen its fashion game for young and digitally native consumers.
This will also help ABFRL make a foray into the branded beauty and personal care segment, which offers tremendous opportunities to create distinct and scalable local brands.
ABFRL plans to expand the Masaba brand through direct-to-consumer (D2C) channels in the segment, which is growing rapidly driven by an increase in women shopping, an increase in disposable income and an acceleration of digital influence.
“The Masaba brand will be scaled primarily through the direct-to-consumer digital channel (D2C), leveraging its strong connection with younger and digitally influenced consumers,” according to a joint statement.
The brand will straddle the entire lifestyle offering that ranges from apparel, accessories, beauty products and other lifestyle products.
“The brand aims to achieve annual sales of around Rs 500 crore over the next five years,” he said.
House of Masaba Lifestyle (HML) was formed in the year 2014.
Her COVID-19 entries impacted Exercise 22, not including her beauty business, and was estimated at Rs 30 crore, ABFRL said while updating stock exchanges on the deal.
Aditya Birla Group expects the deal to be completed in 60-90 days. However, this will be subject to the signing of final agreements, the completion of the closing conditions and statutory approvals.
ABFRL Chief Executive Ashish Dikshit said, “This partnership is also an important step in building a presence in the fast growing beauty and personal care segment. This fits in well with our overall strategy of partnering with the best. Indian designers to build a portfolio of distinct and ambitious local brands across all categories of fashion and lifestyle. ”
House of Masaba founder Masaba Gupta said: “The House of Masaba has already established a strong foothold among young people with a solid digital-first strategy and the bond with ABRFL will strengthen this position, making the brand ready. for the future”.
Gupta added that with this partnership, he is looking forward to creating engaging and collaborative experiences for the company’s target audience who are now heavily engaged in virtual media and are driving the industry’s evolution towards the Metaverse.
ABFRL extends its game after acquiring fashion companies and brands.
In February of last year, he had teamed up with stylist Tarun Tahiliani and a month earlier, ABFRL had announced the acquisition of a 51% stake in the designer brand Sabyasachi.
In June, Jaypore, the ethnic e-commerce brand of Aditya Birla Fashion and Retail Ltd, made a foray into the menswear category.