Reebok deal price, growth potential positive for Aditya Birla Fashion

The near term, however, could see higher investments in marketing, expansion

In a deal which will mark its entry into the sports/activewear segment, Aditya Birla Fashion and Retail (ABFRL) announced an agreement with US-based Authentic Brands Group (ABG) for the exclusive online and offline rights for the Reebok brand in India and the ASEAN region. As part of the deal, ABFRL will pay ABG about Rs 75-100 crore for the purchase of inventory and other current assets and liabilities.

Sportswear is the fastest growing segment in the footwear space with growth having accelerated over the last couple of years due to the pandemic. From $10 billion (Rs 76,000 crore) estimated sales