India’s largest apparel retail company, ‘Aditya Birla Fashion and Retail Limited’ is now planning to unfold a new chapter in the Indian retail landscape. The company is in talks to tie-up with the global brand Forever 21 for the Indian market. Forever 21 is one of the fastest growing fashion retailers in the world with a large network of more than 700 stores across the globe.
Company’s Board of Directors have in-principally approved a proposal to enter into a binding Memorandum of Understanding (MoU) with Forever 21. ABFRL aims at acquiring exclusive online and offline rights to the global brand for the Indian market and its existing store network in India from the current franchisee i.e. Diana Retail Private Limited. The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreement
Commenting on the same, Pranab Barua, Managing Director, ABFRL, said, “The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment.”
Currently, the western womenswear segment is growing at more than 20 per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion space, he added.
Expressing his gratitude on the proposal, Jatin Malhotra, Director, Global Expansion, Forever 21, said Forever 21 has built a very strong franchise in India in the last few years and has already become a brand of choice for fashion conscious women. The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand.”
The partnership of Forever 21 and ABFRL will help establish Forever 21 as one of the largest womenswear brand in the country, he added.