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Marking its foray into the sports and activewear segment, Aditya Birla Fashion and Retail Limited (ABFRL) on Tuesday announced the signing of a long-term licensing agreement with Authentic Brands Group (ABG) to distribute and sell Reebok products through wholesale, e-commerce, and Reebok branded retail stores in India and other ASEAN countries.
According to the company, the sports and activewear segment is expected to grow to $13 billion by FY24 at an annual growth rate of 14 per cent.
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Ashish Dikshit, Managing Director, ABFRL, said, "We plan to accelerate Reebok's business in India, combining its global appeal and salience amongst Indian youth. This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces."
ABFRL will partner with Reebok Design Group (RDG), the newly established global brand hub based in Boston, on all product design, development, innovation and creative direction to drive a unified brand voice and vision. According to stock exchange filing, the "expected consideration of Rs 75-100 Crore towards the purchase of inventory and other current assets and liabilities, subject, however, to actual value at the time of closure."
The proposed transaction is subject to the successful completion of due diligence, necessary statutory approvals and signing of definitive agreements. The transfer of ownership of the Reebok brand from Adidas to ABG is expected to close in Q1 of 2022.
The company has also made a foray into branded ethnic wear by acquiring the Jaypore brand and partnerships with India's leading designers Shantanu and Nikhil, Tarun Tahiliani and Sabyasachi.
It also has a repertoire of market-leading brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England. The International Brands portfolio includes - The Collective, India's largest multi-brand retailer of international brands, Simon Carter and select mono-brands such as Forever 21, American Eagle, Ralph Lauren, Hackett London, Ted Baker and FredPerry.
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