Adds background, details about the deal
BENGALURU, January 14 (Reuters) – Aditya Birla Fashion and Retail (ABFRL) of India ADD.NS said Friday that it will purchase a 51% stake in House of Masaba Lifestyle for approximately Rs. 900 million ($ 12.14 million) as it seeks to strengthen its presence in the fast-growing segment.
Major Indian retailers ABFRL and billionaire Mukesh Ambani were owned by Reliance Industries Ltd’s RELI.NS the retail unit has been shopping for premium brands over the past year as they compete for a stronger foothold in the fashion space.
ABFRL acquired a 51% stake in the luxury wedding dress brand Sabyasachi in January last year, while Reliance Retail bought 52% of the Ritu Kumar brand in October.
Founded by Masaba Gupta in 2009, House of Masaba Lifestyle sells under the Masaba brand and offers a wide range of products ranging from cosmetics to clothing. Some of Masaba’s dresses are priced at Rs 90,000, according to her website.
ABFRL and House of Masaba Lifestyle have entered into a binding agreement on the terms sheet, marking the entry of the Aditya Birla group company into the beauty and personal care market in India, ABFRL said.
House of Masaba Lifestyle is aiming for annual sales of around Rs 5 billion over the next five years and will be scaled down primarily through the online platform, ABFRL said.
($ 1 = 74,1100 Indian rupees)
(Reporting by Chandini Monnappa in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
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