Friday, Apr 19, 2024 | Last Update : 05:59 AM IST
Aditya Birla Fashion buys Reebok rights
A long-term licensing agreement between ABFRL and Authentic Brands Group gives exclusive rights to distribute and sell Reebok products
Chennai: Aditya Birla Fashion and Retail Ltd has received exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and Asean countries.
Authentic Brands Group (ABG), a global brand development, marketing and entertainment company and ABFRL have signed a long-term licensing agreement, which grants ABFRL exclusive rights to distribute and sell Reebok products.
Reebok brand has been with Adidas since 2006. In August Adidas had entered into a definitive agreement to sell Reebok to ABG for 2.1 billion euros ($2.37 billion.). The transfer of ownership of the Reebok brand from Adidas to ABG is expected to close in the January-March quarter of 2022.
This deal marks ABFRL's foray into India's fast-growing sports and active-wear segment. Over the last few years, this segment has been growing rapidly on the heels of rising income levels, increased health consciousness and the adoption of active lifestyles by young Indians. This segment is expected to grow to $13 billlion by FY24 at an annual growth rate of 14 per cent.
"As Indians get more active, athletic and health focussed, their consumption of apparel and accessories is expected to increasingly change in line with these trends, providing an opportunity to build iconic brands of global repute. 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," said Ashish Dikshit, managing director, ABFRL.
ABFRL has a portfolio of leading brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England established for over 25 years. Pantaloons is a large value fashion retail brand. ABFRL has a network of 3,264 stores across about 26,840 multi-brand outlets with 7,094 points of sale in department stores across India. ABFRL is also the exclusive retailer for Forever 21, American Eagle Outfitters and Ralph Lauren clothes in India.
ABFRL shares surged 6.5 per cent on the BSE.
