Aditya Birla Group Chairperson Kumar Mangalam Birla has outlined a strong strategy to capture opportunities in the fast changing Indian fashion market through its two entities, Aditya Birla Fashion and Retail Ltd (ABFRL) and Aditya Birla Lifestyle Brands Ltd (ABLBL).
In his address to shareholders of ABFRL, Birla highlighted that India’s per capita GDP is expected to rise from 2,500 dollars to more than 4,000 dollars in the next five years. He said this phase of aspirational consumption will drive a major shift from unorganised to organised retail, expand demand across categories, and fuel the creation of strong brands.
“With India’s dynamic economic growth, an expanding middle class and rapid shifts in consumer behaviour, we are confident that the opportunities ahead are significant,” Birla said.
The group recently completed the demerger of ABLBL from ABFRL, which was listed in June 2025. ABLBL houses lifestyle labels such as Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, and American Eagle. ABFRL operates Pantaloons, digital first brands under TMRW, and ethnic fashion labels including Sabyasachi, Shantnu and Nikhil, House of Masaba, Tarun Tahiliani, Jaypore, Tasva, and the TCNS portfolio.
Birla said the two entities now serve as “dual growth engines” giving the group a competitive edge across critical fashion segments. To strengthen this growth, ABFRL raised 490 million dollars through Qualified Institutional Placement and preferential issuance, providing strong capital support for future expansion.
ABLBL aims to deliver consistent double digit growth in revenue and earnings, with over 250 new stores in the pipeline for FY 2025-26. Meanwhile, ABFRL will focus on strengthening Pantaloons with an EBITDA margin improvement target of 300 basis points over five years and 20 to 25 new stores annually. Its Style Up format plans to open 50 stores in FY 2025-26, with expansion to more than 200 stores by FY 2027-28.
According to the company’s annual report, the Indian apparel industry was valued at Rs 9.3 lakh crore in FY25, growing at 11 percent CAGR since FY19, and is expected to cross Rs 14 lakh crore by FY30. Growth will be supported by higher disposable incomes, urbanisation, brand awareness, and the rise of organised retail and e-commerce. Technological advancements such as virtual try ons and AI powered product recommendations are also set to accelerate the industry’s transformation.
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