Key Points
NEW DELHI : Aditya Birla Fashion and Retail Ltd (ABFRL) is evaluating a vertical demerger of the Madura Fashion & Lifestyle business from itself into a separate listed entity, the company said in an exchange filing on Monday. . The proposed demerger will help create two separately-listed companies as independent growth engines with distinct capital structures and parallel value-creation opportunities, ABFRL added..
(ABFRL), at its meeting today, has authorized the management of the company to evaluate the vertical demerger of Madura Fashion & Lifestyle business from ABFRL into a separate listed company," according to the statement..
As part of the proposed demerger, the Madura Fashion & Lifestyle business segment (MFL), consisting of four lifestyle brands including Louis Philippe, Van Heusen, Allen Solly, and Peter England, besides casual-wear brands such as American Eagle and Forever 21, sportswear brand Reebok and the innerwear business under Van Heusen, will be demerged into a separate listed entity..
The post-demerger portfolio of ABFRL would consist of value retail portfolio under Pantaloons & Style Up, ethnic wear portfolio with brands such as Tasva and Masaba, luxury formats including The Collective, Galeries Lafayette, apart from the companys more recent foray into direct-to-consumer brands under the TMRW portfolio. ..
Meanwhile, post demerger, the remaining ABFRL will be focused on "high-growth" segments where there are tailwinds from a shift from unbranded to branded, premiumization, rise of super premium and luxury, and rapid growth in Gen Z-focused digital-first brands..
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