The Indian multinational conglomerate company, Aditya Birla Group has acquired the rights and services of the sportswear brand, Reebok. Aditya Birla Fashion and Retail Limited (ABFRL), which is India’s leading fashion company, has penned down a long-term licensing contract agreement with the US-based brand management company Authentic Brands Group (ABG), to acquire the business of Reebok in India and South-East Asia.
As part of the deal, ABFRL has the exclusive rights to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India and other Association of Southeast Asian Nations countries, mentioned in the press release.
While adding to that, the press release also highlighted that the transfer of ownership of the Reebok brand from Adidas to Aditya Birla Group will be fully completed in the first quarter of 2022.
Following this acquisition, Aditya Birla Group looks forward to stepping into one of the growing markets. The sportswear and athleisure market is expected to grow at an annual rate of 14% and touch $13 billion by the year 2024.
Speaking on the occasion, Mr. Ashish Dikshit, Managing Director, ABFRL said: “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. In partnership with ABG, we plan to accelerate Reebok’s business in India, combining its global appeal and salience amongst Indian youth. This transaction further strengthens the ABFRL portfolio and increases our ability to engage with consumers across various need spaces.”
Adding to that, Corey Salter, Chief Operating Officer, Authentic Brands Group said: “ABFRL is a champion of the fashion industry in India with proven expertise in building and operating large-scale lifestyle brands across the region. We are very pleased to expand our existing partnership with ABFRL, which includes Forever 21 and other ABG brands, and are confident that ABFRL will be successful in solidifying Reebok’s position with a growing audience of fans in India and Southeast Asia.”
The company has said that it would be spending around ₹75 crore to ₹100 crore for purchasing inventory and other current assets and liabilities. With the company selling Reebok products, it has put the brand besides the likes of Louis Philippe, Van Heusen, and Allen Solly, which are also sold exclusively by ABFRL.