Aditya Birla Fashion Surges 5% On Buying Exclusive Rights To Reebok
Aditya Birla Fashion and Retail Ltd. (ABFRL) shares surged five per cent to hit an intraday high of Rs 278.10 after the company said on Tuesday that it had in-principal approved buying exclusive online and offline rights to the global sportswear brand Reebok for the Indian market.
The deal will be effective once the global ownership of the Reebok brand is transferred from Adidas to Authentic Brands Group under a 2.1 billion euros ($2.37 billion) acquisition announced in August.
Major fashion retailers have gone on a shopping spree for big brands this year, aiming to strengthen their positions in one of the country's fastest growing segments. ABFRL picked up a 51 per cent stake in luxury wedding wear brand Sabyasachi, while rival Reliance Industries' retail unit bought 52 per cent of designer label Ritu Kumar.
"India's leading fashion company, today announced the signing of a long-term licensing agreement, which grants ABFRL exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and other ASEAN countries," Aditya Birla Fashion and Retail said in a press release.
The deal marks Aditya Birla Fashion's foray into fast-growing sports and active wear segment which is expected to grow to $13 billion by financial year 2024 at an annual growth of 14 per cent, the company said.
"Reebok is one of the leading brands in the sporting goods industry globally and has built a very strong presence in the Indian market over the last two decades. In partnership with ABG, we plan to accelerate Reebok's business in India, combining its global appeal and salience amongst Indian youth. This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces," said Ashish Dikshit, managing director at ABFRL.
As of 11:28 am, Aditya Birla Fashion was trading 4.36 per cent higher at Rs 277.65, outperforming the Sensex which was down 0.6 per cent.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
