Latest news with #AshishDikshit
Mint
23-06-2025
- Business
- Mint
Newly listed Aditya Birla Lifestyle aims to invest ₹300 crore every year
Mumbai/ Bengaluru: Newly listed Aditya Birla Lifestyle Brand Ltd is betting on its multi-brand portfolio to double its revenue and improve profitability threefold in the coming years, according to a senior executive. 'We plan to invest ₹300-odd crore every year, a large part of it will go into the expansion of the retail network," said Ashish Dikshit, managing director of Aditya Birla Lifestyle Brands Ltd (ABLBL), during the company's listing on stock exchanges. It was spun off from Aditya Birla Fashion and Retail Ltd. Shares of ABLBL fell 4.98% to ₹159.40 on Monday compared with a 0.56% decline in Nifty 50. Read more: Apparel retailers reset their summer calendar with early end-of-season sales as consumer spending cools ABLBL has a retail presence of more than 3,250 stores, with 70% of the outlets run by franchisees under an asset-light model. Retail contributes to 60% of ABLBL's revenue, followed by e-commerce at 13-14%, and the rest comes from exports and tie-ups with departmental stores, according to an executive privy to the information. Post-demerger strategy Aditya Birla Fashion demerged its Madura Fashion & Lifestyle business into ABLBL to sharpen operational focus and unlock shareholder value, according to the company's information memorandum. The move, formalised through a scheme of arrangement, aims to streamline the group's fashion portfolio by separating its lifestyle brands, including Louis Philippe, Van Heusen, Allen Solly and Peter England, into an independent company. This structure enables each business to pursue distinct growth strategies and tailor capital allocation. Post demerger, ABLBL is expected to deploy cash flows more efficiently, expand its brand portfolio with agility and engage more effectively with targeted investor segments. ABLBL now plans to scale up to 4,500 stores by FY30 and expand average store sizes from 1,400 sq. ft. to 2,000 sq. ft., growing total retail area by 50%. It aims to exceed 1,000 stores each for its four flagship brands, Louis Philippe, Van Heusen, Allen Solly and Peter England. Over 580 of its stores already serve small towns, and more than half its revenue comes from consumers under 35, according to a 23 June note by Motilal Oswal Financial Services Ltd. The bullish outlook mirrors Boston Consulting Group's estimates that India's overall retail market is likely to grow to $2 trillion within the next decade, up from $820 billion in 2023. However, the competition in India's fast-growing apparel industry is rising. Tata-backed Trent Ltd, which aims to grow its value brand Zudio by 25% in the coming years, reaffirming chairman Noel Tata's vision of expanding the company 10 times its current size. The brand added 244 stores in FY25 alone and now has 765 outlets across 235 cities. Read more: Aditya Birla Group has chalked out an aggressive five-year plan for fashion, lifestyle units ABLBL's fashion format also competes with Ambani-backed Reliance Retail, which has ₹3.3 lakh crore in revenue and has a presence of over 19,000 stores, with brands like Trends, Azorte, Yousta, and partnerships with global labels such as GAP, Superdry, and Balenciaga. Aditya Birla Lifestyle wants to build India's first billion-dollar brands over the next decade. While the company's larger brands including Louis Philippe, Van Heusen, and Allen Solly are already in the ₹2,000–2,500 crore range, the newer additions of Reebook, Van Hausen and American eagle are poised to 'scale rapidly in the large, under-penetrated and high-growth territories spaces of innerwear, activewear and casuals," said Dikshit. The company is not looking at any acquisitions in the immediate future, citing reasons of an already diverse portfolio, but remains open to inorganic growth opportunities in the next four to five years. The company is targeting a revenue growth of around 10% over FY25–28, wrote analysts at Motilal Oswal in the note. 'ABLBL is the largest player in branded apparel by revenue and store footprint, but its execution has been patchy in recent years," MOSL said. The company aims to add 250+ stores annually and aims to double revenue by FY30. It also expects to become debt-free and start dividend payouts by FY28. According to Motilal Oswal, both gross and EBITDA margins are projected to rise by 80–140 basis points between FY25 and FY28. The analyst report flags a few areas of concern regarding the newly listed demerged entity. Muted demand trends, slower momentum in scaling up newer brands such as Reebok and American Eagle, and rising store operating costs could pose challenges. In addition, investors who entered during the demerger or recent fundraising by Aditya Birla Fashion, may choose to exit, creating short-term pressure on the stock. Read more: Inside India's underground network of fake e-commerce reviews
Business Standard
23-06-2025
- Business
- Business Standard
Aditya Birla Lifestyle Brands lists on stock exchanges
Shares of Aditya Birla Lifestyle Brands (ABLB) were listed on the BSE and NSE today, 23 June 2025, following its demerger from Aditya Birla Fashion & Retail (ABFRL). The stock listed at Rs 167 on the NSE, lower than the discovered price of Rs 170.95, and at Rs 167.75 on the BSE, versus a discovered price of Rs 172.15. Aditya Birla Lifestyle Brands successfully listed on BSE and NSE early this morning, completing the demerger of Aditya Birla Groups fashion business into two independent listed entities with distinct value creation trajectories. Under the scheme of arrangement, Aditya Birla Fashion & retail (ABFRL) has demerged its Madura Fashion & Lifestyle (MFL) business and vested it into Aditya Birla Lifestyle Brands. Shareholders of ABFRL will receive one share of Aditya Birla Lifestyle Brands for every share held in ABFRL as of the record date. ABLBL is now poised to operate with greater agility, a sharper strategic focus, and more disciplined capital allocation. The company houses a powerful portfolio of brands including - Louis Philippe, Van Heusen, Allen Solly, Peter England, Simon Carter and youth western wear brand - American Eagle, Additionally, the Reebok sportswear brand and the innerwear business under Van Heusen will also be part of the demerged entity. The company said that with this diverse portfolio of strong brands and access to free cash flow, the business is poised to pursue an aggressive growth trajectory. It is expected to double in scale with improved profitability over the next five years, reinforcing its position as one of the largest branded fashion players in the country. Kumar Mangalam Birla, chairman, Aditya Birla Group said This moment marks both a recognition of the progress we have made and a clear signal of the scale of opportunity that lies ahead. India stands at the cusp of a transformative growth phase, with consumption poised to be a primary driver. ABLBLs foundation is built on enduring strengths that set it apart in a competitive market. Our ambition is clear. To build Indias first portfolio of billion-dollar brands in fashion and lifestyle. Ashish Dikshit, managing director, Aditya Birla Lifestyle Brands, said, As ABLBL embarks on this new chapter as a listed company, we do so with humility, a deep sense of responsibility, and unwavering confidence in our vision. On behalf of the entire ABLBL team, I extend heartfelt gratitude to our partners, investors and all our stakeholders for their enduring trust and support. We are energized by the opportunities ahead and look forward to building, together, Indias next generation of iconic brands. Aditya Birla Lifestyle Brands (ABLBL) is part of a leading Indian conglomerate, Aditya Birla Group. ABLBL is a leading force in fashion, curating a distinguished portfolio of premium western wear brands. It has a repertoire of leading brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England established for over 25 years. The company has also partnered with leading brands like Simon Carter, American Eagle and Reebok to strengthen its portfolio.
Business Mayor
02-05-2025
- Business
- Business Mayor
Ashish Dikshit appointed as MD of Aditya Birla Lifestyle Brands
New Delhi: Aditya Birla Fashion and Retail Ltd on Thursday said its Managing Director Ashish Dikshit has been appointed as Managing Director of demerged entity Aditya Birla Lifestyle Brands Ltd in addition to his current position. The board of directors of Aditya Birla Lifestyle Brands Ltd at its meeting held on Thursday has approved the appointment of Ashish Dikshit as Managing Director, in addition to his current position as Managing Director of Aditya Birla Fashion and Retail Ltd, the company said in a regulatory filing. Further, the Aditya Birla Lifestyle Brands board also approved the appointment of Vishak Kumar as Deputy Managing Director and Chief Executive Officer, it added. Their appointments are with effect from May 1, 2025, subject to the regulatory and other necessary approvals, the filing said. Dikshit has over 30 years of experience in diverse roles across industries and functions. He started his career at Asian Paints before moving to Madura Fashion and Lifestyle, where he worked in its various functions, ranging from sales, brand management, supply chain and sourcing over 15 years, the filing said. He was appointed President of its Lifestyle (MFL) Business in 2007 and went on to become its CEO in 2012. In February 2018, he took over as the Managing Director of Aditya Birla Fashion and Retail Ltd. He is an alumnus of IIT-Madras (Electrical Engineering), IIM-Bangalore (MBA) and Harvard Business School (Advanced Management Program). Read More Electric Pickup Trucks: Redefining Robust Rigs Kumar was CEO of Madura Fashion & Lifestyle (MFL), a business unit of Aditya Birla Fashion and Retail Ltd. He joined the Madura business in 1995 as a management trainee. During his 30-year-long stint, he has worked across functions and occupied various roles in sales, marketing and retail, the filing said. Prior to his stint as CEO of Madura, he was the CEO of Aditya Birla Retail Ltd, where he was instrumental in transforming the 'More' Supermarket and Hypermarket business, it added. READ SOURCE
