2021 will go down in history as perhaps the most exciting year of fashion and retail in India. Five of India’s greatest designers have sold a large chunk of their businesses to retail conglomerates in an effort to expand their already hugely successful businesses. What does this sign mean for Indian fashion? Is this a corporateization of luxury, intended above all as wedding couture in our country? Are they the great fathers of design who run for cover in post-pandemic misery? Or are we finally ready to cash in on the idea that a designer’s name is also a mass brand?
A little of all of the above. But above all still a big risk.
Predictably, the first to make the rounds was Sabyasachi, the most successful wedding designer in the country, which means the one with the highest turnover. Aditya Birla Fashion and Retail Limited (ABFRL) announced in February that they were acquiring 51% stake in its business for Rs 398 crore, after a 25-30 fold EBITDA calculation. This made Sabyasachi’s turnover of 270-275 crore rupees in the previous financial year.
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