Aditya Birla Fashion Retailer Ltd is planning to create a business from its traditional wear acquisitions over four to five years, in a bid to take on brands like Manyavar and Biba.
Aditya Birla Fashion Retailer has recently entered the segment by fully acquiring Jaypore and TG Apparel, and has also entered into a partnership with designers Shantanu and Nikhil with a 51 percent stake in Finesse.
The company foresees building at least a Rs 300-crore ($41.8 million) business in the medium-term, Chief Financial Officer Jagadish Bajaj told analysts, in a post-earnings conference call.
Launched in 2012, Jaypore currently has two stores and largely sells women’s clothing and accessories online. The company is also working on launching a more affordable range of clothing under the Shantanu & Nikhil brand that now sells more expensive clothing, according to a report in a leading newspaper in south India.
It will take some time to turn around Jaypore as it is loss-making, but the other new acquisitions do not have much losses, Bajaj said.