Aditya Birla Fashion to buy 51% stake in House of Masaba for Rs 90 crore |  Photo Credit: Representative Image
New Delhi: Aditya Birla Fashion and Retail (ABFRL) is poised to acquire a 51 per cent stake in House of Masaba Lifestyle promoted by leading designer Masaba Gupta for around Rs 90 crore as it looks to strengthen its portfolio of fashion labels.
The partnership aims to create a young, aspirational and digital-led portfolio play, across the affordable luxury segment in the fashion, beauty and accessory categories.
In a filing to the exchanges, ABFRL said through investment in brand ‘Masaba’, the company will bolster its play into fashion for young and digitally native consumers along with marking a foray into the branded beauty and personal care segment.
“Brand Masaba will be scaled predominantly through the digital direct-to-consumer (D2C) channel, leveraging its strong connect with younger and digitally influenced consumers,” it said.
The brand will straddle across the entire lifestyle offerings ranging from apparel, accessories, beauty and other lifestyle products.
“The brand is targeting to achieve annual revenues of around Rs 500 crore in the next five years,” it mentioned.
Worth mentioning here is that both ABFRL and billionaire Mukesh Ambani-controlled Reliance Brands have been on a shopping spree for premium brands that have been impacted because of the pandemic and limited financial power in an attempt to gain a strong foothold in the fashion segment.
In 2009, Masaba Gupta founded House of Masaba Lifestyle that sells under the brand name Masaba and offers a wide variety of products ranging from cosmetics to clothes. Some of Masaba’s outfits are priced as high as Rs 90,000, according to her website.
Ashish Dikshit, Managing Director, ABFRL said: “As a new generation of young and digitally native consumers explore their needs within fashion and lifestyle, they actively seek brands that are colourful, vivid and digital. Masaba is a young, effervescent brand with a refreshing and innovative take on every lifestyle category.”
He added, “This partnership is also an important step in building presence in the fast-growing beauty and personal care segment. This fits in well with our overall strategy to partner India’s top most designers to build a portfolio of distinctive and aspirational home-grown brands across fashion and lifestyle categories.”
House of Masaba will solidify into a 360-degree, global lifestyle brand of the future. “The House of Masaba already has established a strong foothold among the youth with a robust digital-first strategy and the tie-up with ABRFL will strengthen this position, making the brand future-ready,” said Gupta, Founder of House of Masaba.