NEW DELHI: Aditya Birla Fashion and Retail Ltd (ABFRL) — the fashion and retail arm of telecom-to-cement conglomerate Aditya Birla Group — is working on a series of measures such as revamping product mix, cost rationalisation, integrating with e-commerce platforms and developing an omni-channel strategy to propel its lifestyle business. The company expects these initiatives, along with robust store expansion would aid its brands including People — a private label under Pantaloons and Forever21 to break-even by fiscal 2023.
“Each of our brands are positioned to chart a strong growth trajectory. The cumulative losses in People, Forever21, innerwear and foreign brands are expected to dip by Rs 15-20 crore in FY20 and by Rs 25-30 crore each in FY21 and FY22. By FY23, we expect these losses to be eliminated,” Ashish Dikshit, MD of ABFRL told analysts in a meeting. Currently, the losses are pegged at Rs 120-130 crore.
Dikshit explained the company is working on strategic changes in People and Forever21 that will help these brands to become profitable. In Forever21, ABFRL has negotiated with the parent entity to have control over local sourcing and over the selection of clothing as per ABFRL’s requirement. “As of now, ABFRL does not have the authority to place Forever21 products in any of its other formats and so existing Forever21 stores will continue to operate until there are changes made in the agreement,” he noted.
Meanwhile, ABFRL has consolidated its People brand in Pantaloons to promote value-for-money product range. “People is being developed as a private label under Pantaloons and from FY21, we expect the brand to become profitable,” the management of ABFRL said. Revenue of People was over Rs 100 crore for FY19.