Flipkart is acquiring a 7.8% stake in Aditya Birla Fashion as the Walmart-owned Indian e-commerce firm makes further push into the fashion category in one of the world’s largest retail markets.
The e-commerce group will pay $203.8 million for its stake in Aditya Birla Fashion and Retail, a conglomerate that operates over 3,000 stores including the Pantaloons brand. As part of the “landmark partnership,” Flipkart will also sell and distribute various Aditya Birla Fashion and Retail’s brands products.
“This partnership is an emphatic endorsement of the growth potential of India,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group, which operates the fashion retail firm in a filing to the stock exchange. “It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”
Kalyan Krishnamurthy, CEO of Flipkart Group, said the two companies will work toward “making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India.”
In July, Flipkart also invested $35 million in $35 million in Arvind Fashions, one of the decades-old Indian firm’s subsidiaries.
More to follow…
from TechCrunch https://ift.tt/3mfEG8k
via Tech Geeky Hub
No comments:
Post a Comment