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    AB Fashion to buy 51% in House of Masaba

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    AB Fashion to buy 51% in House of Masaba

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    Aditya Birla Fashion and Retail paid Rs 90 crore for a 51 percent stake in the House of Masaba. It is building a gamut of designer brands and after having a stake in Sabyasachi, Shantanu and Nikhil and Tarun Tahiliani.

    Aditya Birla Fashion and Retail paid Rs 90 crore for a 51 percent stake in the House of Masaba.
    It is building a gamut of designer brands and after having a stake in Sabyasachi, Shantanu and Nikhil and Tarun Tahiliani.
    Aditya Birla Fashion is not the only one; over the last year or so, investments have been seen in this space coming from Reliance as well. Reliance, for instance, has taken Satya Paul, Manish Malhotra as well as Ritu Kumar. So, all these designers eventually, after building their label proof of concept, are finding corporate buyers who are looking to scale up these brands and get more revenue out of them.
    Apart from designer brands, Aditya Birla Fashion entered into ethnic wear as well and recently also bought the license for Reebok. So that gives them the entire portfolio alongside the brands that they have already.
    Looking at Masaba’s revenues, they have been close to Rs 30 crore for the previous year, but that's from a limited number of stores.
    Therefore, what Aditya Birla Fashion or Reliance can do to these brands is take their brands and leverage their presence with the presence that they have across the country and the scale-up could be manifold just by virtue of these brands being available at multiple places as against just a few stores that they are in currently.
    So it will be extremely interesting to track this space as designer brands are moving corporates now and people will buy them.
    Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
    Watch the accompanying video of CNBC-TV18’s Mangalam Maloo for more details.
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