NCLT OKs demerger of Aditya Birla Fashion's Madura Fashion ops into new co
This story was originally published at 20:26 IST on 27 March 2025
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--NCLT OKs demerger of Aditya Birla Fashion's Madura Fashion ops into new co
NEW DELHI – The Mumbai bench of the National Company Law Tribunal on Thursday approved the demerger of Aditya Birla Fashion and Retail Ltd.'s Madura Fashion and Lifestyle business into a newly incorporated company Aditya Birla Lifestyle Brands Ltd.
From the material on record, the scheme of demerger appeared to be fair and reasonable and was neither violative of any provisions of law nor contrary to public policy, said the tribunal. "Since all the requisite statutory compliances have been fulfilled, Company Scheme Petition No. 43 of 2025 (C.P. (CAA)/43/MB/2025) is made absolute in terms of the prayer clause of the said Company Scheme Petition," said the tribunal.
Aditya Birla Lifestyle Brands will house lifestyle brands such as Louis Phillippe, Van Heusen, Allen Solly and Peter England; casual wear brands such as American Eagle and Forever 21; sportswear brand Reebok; and Van Heusen innerwear. Aditya Birla Fashion and Retail will house platforms such as Pantaloons and Style Up; an ethnic wear portfolio including designer-wear partnerships and the recently acquired portfolio of TCNS brands; luxury offerings such as The Collective, Galeries Lafayette; and a portfolio of digital brands under TMRW.
In April 2024, the board of directors of the petitioner companies had approved the scheme of arrangement. Aditya Birla Fashion and Retail runs a diverse portfolio of fashion brands and retail formats with key business segments comprising Madura Fashion and Lifestyle and Pantaloons, Ethnic portfolio along with other new growth platforms. Aditya Birla Fashion said Madura Fashion and Lifestyle business has built a leadership position over a long period of time and has a proven track record of delivering consistent revenue growth, profitability, strong free cash flows and high return on capital.
According to Aditya Birla Fashion, the distinctive profile and established business model of the Madura Fashion and Lifestyle business makes it suitable to be housed in a separately listed entity, allowing sharper strategic focus in pursuit of its independent value creation trajectory. This will result in better and efficient control and management for the segregated businesses, operational rationalisation, organisation efficiency and optimum utilisation of various resources, said Aditya Birla Fashion.
Aditya Birla Fashion said after demerger, it will house multiple growth platforms across value and masstige retail, branded ethnic business, super premium and luxury retail formats and portfolio of digital brands and will chart its own growth journey.
On Thursday, the shares of Aditya Birla Fashion and Retail Ltd. ended 0.5% lower at INR 256.27 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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