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Aditya Birla Fashion and Retail Limited

Aditya Birla Fashion and Retail (ABFRL) emerged in 2015 from the consolidation of several apparel businesses under the Aditya Birla Group, and posted an operating profit of Rs. 422 crore in the recent quarter. Strong festive demand and cost controls helped drive margin expansion despite revenues only recovering to pre-COVID levels. The company continues its strategic transformation through digitization, network expansion, and an acquisition of the Sabyasachi brand as it recovers from the pandemic.

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1K views10 pages

Aditya Birla Fashion and Retail Limited

Aditya Birla Fashion and Retail (ABFRL) emerged in 2015 from the consolidation of several apparel businesses under the Aditya Birla Group, and posted an operating profit of Rs. 422 crore in the recent quarter. Strong festive demand and cost controls helped drive margin expansion despite revenues only recovering to pre-COVID levels. The company continues its strategic transformation through digitization, network expansion, and an acquisition of the Sabyasachi brand as it recovers from the pandemic.

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ABFRL

 ABFRL emerged after the consolidation of the branded apparel


businesses of Aditya Birla Group comprising ABNL's Madura
Fashion division and ABNL's subsidiaries — Pantaloons Fashion
and Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May
2015. Post the consolidation, PFRL was renamed Aditya Birla
Fashion and Retail Ltd.
  
Latest news

 Aditya Birla Fashion posted operating profit or earnings before interest, tax, depreciation and
amortisation (EBITDA) of ₹ 422 crore as against ₹ 423 crore in the corresponding period a year
ago.
 Superior product offerings, tighter markdown management and relentless fixed cost controls
fueled margins by 400 basis points, the company said in a press release.
 The pace and extent of recovery that started with the opening of stores in second quarter was
amplified on the back of a large pent up demand, strong festive spirit and a concentrated wedding
season.
 A combination of the above factors led to an upsurge in sales to almost double of Q2 levels, said
the company. Aided by the performance of businesses along with aggressive cost and working
capital control measures, ABFRL generated nearly ₹ 588 crore cash during the quarte, the company
added.
ABFRL

 Company continues its strategic transformation agenda


 Digitisation across front end and back end with tremendous agility
 Relentless pursuit of creating products that consumers want – launched newer
categories and segments relevant in the current context
 Accelerated network expansion
 Launched more than 230 stores across businesses and formats
 Entered smaller towns and cities through newer brand pilots
 The company signed an agreement to acquire 51 per cent stake in ‘Sabyasachi’,
the iconic global luxury brand from India.
 Lifestyle brands – On the back of strong festive and favourable wedding seasons, the
business recovered to 80 per cent of LY levels, with retail channel recording 92 per cent
recovery. Improved gross margins and strong cost control measures drove a margin
expansion of 140 bps.
 Pantaloons – Business recovered to 75 per cent of pre-COVID levels, reporting the
highest ever EBITDA margins in the history of the company. This was driven by
improved product mix, superior inventory management leading to lower discounts
and stringent control of fixed costs.
 Other business segment comprises of Youth fashion brands such as
Forever 21 and American Eagle, Innerwear and athleisure
business, Global brands and newly incubated ethnic wear
businesses.
 Other business segment comprises of Youth fashion brands such as
Forever 21 and American Eagle, Innerwear and athleisure
business, Global brands and newly incubated ethnic wear
businesses.
Retail Mix

 Location
 Merchandise assortment- SKUs
 Pricing- markups, markdowns, EDLP, Hi-low pricing
 Customer service
 Communication
 Store design & layout
 KPIs
 SOPs
 Conversion
 Basket size
 Average bill value
 Store profitability
 What would be your key concerns while opening a new store?
 How would you motivate and handle employees- CCAs

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