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Aditya Birla Fashion to buy 51% stake in bespoke apparel brand Shantanu & Nikhil
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Aditya Birla Fashion and Retail Ltd (ABFRL), a unit of Aditya Birla Group, has agreed to acquire a 51% stake in Finesse International Design Pvt. Ltd, which owns bespoke apparel brand Shantanu & Nikhil brand.

ABFRL will acquire the stake for around Rs 60 crore ($8.75 million at current exchange rates), subject to closing adjustments, the company said in a stock-exchange filing.

The acquisition comes around a month after Aditya Birla Fashion said it would buy Jaypore e-Commerce Pvt. Ltd, which runs an eponymous ethnic items' marketplace, for an enterprise value of Rs 110 crore ($15.8 million).

ABFRL managing director Ashish Dikshit said the company would work with Shantanu & Nikhil to grow its existing couture business and will expand its consumer market segments. “Indian ethnic wear is a large segment in Indian fashion market and we have identified it as an important growth opportunity for ABFRL,” Dikshit said.

Shantanu & Nikhil co-founders Shantanu Mehra and Nikhil Mehra said this is perhaps the first-of-its-kind deal “where fashion meets business”.

The transaction, which includes a primary equity infusion and a secondary share purchase, is likely to close within 30 days.

Wazir Advisors acted as the sole adviser to Shantanu & Nikhil on the transaction.

Incorporated in 2007, Shantanu & Nikhil sells contemporary Indian designs through its own stores. It also sells footwear and accessories. According to its website, the company has ventured into sportswear design by partnering with Adidas and Indian Premier League franchise Mumbai Indians. It has also ventured into the interior design segment.

Aditya Birla Fashion, which sells products under brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England, has a network of over 2,700 stores across 750 cities in the country. It also runs fashion stores under the Pantaloons brand.

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