Aditya Birla Fashion and Retail (ABFRL) today said it will be entering into a binding MoU with global clothing brand Forever 21 to acquire its online and offline rights for the Indian market.
Forever 21 is among the fastest growing fashion retailers in the world with a large network of more than 700 stores worldwide.
"The Board of Directors of Aditya Birla Fashion and Retail today in-principally approved a proposal to enter into a binding memorandum of understanding [MoU] with Forever 21 to acquire its exclusive online and offline rights to the global brand - Forever 21, for the Indian market and its existing store network in India from the current franchisee i.E. Diana Retail Private Ltd," the company said in a statement here.
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The proposed acquisition is subject to necessary statutory approvals and signing of definitive agreements.
"The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment," Pranab Barua, Managing Director, ABFRL said.
"Currently, the western womenswear segment is growing at more than 20 per cent. The proposed acquisition will further strengthen leadership position of ABFRL in the branded fashion space," he added.
Forever 21 expects that its partnership with ABFRL will help establish it as one of the largest womenswear brand in the country.
"The young demographics of the country and emergence of fast fashion segment offers opportunity for rapid growth for the brand," Jatin Malhotra, Director, Global Expansion, Forever 21 said.
ABFRL was formed after the consolidation of the branded apparel businesses of Aditya Birla Group comprising Aditya Birla Nuvo, Madura Fashion division and ABNL's subsidiaries Pantaloons Fashion and Retail Ltd and Madura Garments Lifestyle Retail Company Ltd in May 2015.
Post the consolidation, PFRL was renamed as Aditya Birla Fashion and Retail, with over 7,000 points of sale across over 375 cities and towns.
