New Delhi Aditya Birla Fashion Retail Limited (ABFRL) may exceed its target 21,000 crore in annual revenue by 2026, and achieve higher milestones for the business going forward, said Chairman Kumar Mangalam Birla.
“We had estimated the revenue of 21,000 crores for the year 2026 during our Annual Investor Day held in March 2021. I am confident that we will be able to exceed that target and set even more milestones for the business going forward,” Birla said at the company’s 15th AGM on Monday.
ABFRL, which operates apparel brands such as Reebok, Van Heusen and Allen Solly in India, has recently 2,195 crore from Singapore’s sovereign wealth fund GIC. The company said the money will support its growth in emerging areas such as ethnic wear, athleisure and D2C.
Over the years, ABFRL has diversified its portfolio by investing in domestic labels; In the last financial year, it also took the rights to sell sportswear brand Reebok in India.
“We followed our first designer partnership with Shantanu and Nikhil by forging new tie-ups in FY 2011 with two of India’s most iconic designers – Tarun Tahiliani and Sabyasachi. Both these partnerships will further strengthen our presence in the luxury wedding and designer wear market. In FY22, your company also announced a tie-up with Masaba Gupta, one of India’s youngest next generation designers,” he added.
Birla said that through these acquisitions and partnerships, ABFRL now has the strongest and most comprehensive ethnic portfolio of brands in the Indian apparel industry and is now poised to expand rapidly.
Birla also warned of global adversities. In recent months, war in Ukraine and fears of a global recession have given rise to major adverse conditions. Birla said the tightness in energy markets and the impact on energy security of some sectors, as well as high energy prices, have triggered a chain reaction, fueling inflationary impulses and volatility. “This has lowered consumer confidence and reduced risk appetite in the financial markets,” he said.
However, he added that India is well prepared to navigate the uncertain global economic environment. “India has a strong pipeline of infrastructure projects. In addition, practical policies of the government such as production incentive schemes are helping. Many industries have seen new project investment announcements,” Birla said. He cautioned that while businesses need to be careful about market volatility and cost pressures, one expects the economy to remain volatile in the medium to long term. will show improvement in development.
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