Bengaluru, NFAPost: TCNS Clothing, India’s prominent women’s ethnic fashion company, has recently announced that it has entered into a definitive agreement to merge with ABFRL, a leading fashion and apparel firm and part of the Aditya Birla Group. The merger will take place through the acquisition of the founder’s stake, followed by a conditional open offer and a subsequent merger between the two entities. The transaction is valued at approximately Rs. 1650 Crores for a 51% stake, making it one of the largest deals in the Indian fashion industry.
According to Mr Onkar Singh Pasricha, Chairman and Executive Director of TCNS, the merger with ABFRL will enable TCNS to achieve greater heights of success and excellence. He expressed his satisfaction that TCNS’s legacy is now under the stewardship of one of the most prestigious and respected groups in the industry, known for its values, ethics, corporate governance, and employee empowerment. He also believes that this landmark transaction will benefit all stakeholders of TCNS.
The Chairman of the Aditya Birla Group, Mr Kumar Mangalam Birla, stated that the transaction represents the group’s faith in the dynamism and buoyancy of the Indian consumer economy and that ABFRL is at the forefront of shaping the fashion landscape of the country. He said that the acquisition of TCNS complements ABFRL’s existing portfolio of exceptional brands across the entire spectrum of Indian fashion, and by embracing TCNS’s portfolio of loved women’s ethnic brands, the group is reinforcing its commitment to ethnic wear, the largest category in the apparel industry. He added that this acquisition positions the fast-growing ABFRL platform for the next phase of transformational growth.
TCNS has established itself as a leading women’s branded apparel company with a proven playbook of multiple brand creations and seamless execution across multiple channels. The Managing Director of ABFRL, Mr Ashish Dikshit, believes that as young Indians identify new-found confidence in their identities woven around Indian culture and heritage, the next set of leading consumer brands will be built in the Indian ethnic wear space. He acknowledged that TCNS, through its brands W, Aurelia, Wishful, and Elleven, is catering to the Indian women’s fashion needs across markets and price points. He further noted that this transaction is the pivotal piece of ABFRL’s ethnic strategy and marks the culmination of its stated intent of building India’s most comprehensive ethnic wear portfolio.
The Managing Director of TCNS, Mr Anant Daga, acknowledged that TCNS has been a pioneer in the branded women’s ethnic wear market in India. He stated that over the last 20 years, the company has built India’s most successful women’s franchise on the back of its leading brands. He believes that the market continues to offer long-term growth opportunities, and the partnership with ABFRL will help TCNS fully realize this potential. He added that ABFRL’s proven brand-building capability, distribution strength, and strong ecosystem of partners will help TCNS’s brands into its next phase of growth and profitability.
Credit Suisse acted as the exclusive financial advisor, Shardul Amarchand Mangaldas & Co acted as the legal advisor, and Grant Thornton acted as an independent valuer for TCNS, while ICICI Securities provided the Fairness Opinion to the Board of TCNS. The transaction is subject to customary regulatory approvals, including approvals from the Competition Commission of India, SEBI, Stock Exchanges, and the National Company Law Tribunal.
