Lotus Philippe, Peter England, Van Heusen and now Jaypore. Aditya Birla Fashion and Retail Ltd. (ABFRL) recently acquired ethnic apparel brand Jaypore for ₹ 110 crore. The company said in a filing to the stock exchange on Monday.
“Ethnic wear is the largest segment in the Indian fashion apparel market. While ABFRL has built a diversified portfolio of brands across different segments, ethnic wear space is currently under represented in our bouquet of offering to consumers” said Ashish Dikshit, M.D of ABFRL.
Jaypore was founded in the year 2012 by Puneet Chawla and Shilpa Sharma. The company was first started as an e-commerce platform service to enter the U.S market. However, the founders saw a huge demand coming from India then they launched in India also in the year 2013. The company sells apparel and accessories and has a presence in both online & offline retail. Currently they have stores in Mumbai & Delhi. The brand sells over 60 countries through its own website. For FY19, Jaypore posted a turnover of ₹39 crore, down from ₹41.9 crore it posted a year ago.
“Board of directors of the company, at its meeting held today, have approved entering into a share purchase agreement with the existing shareholders of ‘Jaypore E-Commerce Pvt. Ltd’, a B2B entity which sells ethnic fashion merchandise under its own brand ‘Jaypore’ and of other third-party brands,” ABFRL said in its filing. The proposed acquisition is a “great strategic addition to our portfolio and gives us a strong footing in a segment that is growing in double digits,” Dikshit said while interacting with media.
The ABFRL will make Jaypore’s offline stores in India soon. ABFRL that also runs the fashion departmental store chain Pantaloons posted a turnover of ₹8,118 crore in fiscal year 2019.