Aditya Birla unit to get exclusive rights to Reebok products in India
Aditya Birla Fashion and Retail Limited (ABFRL), an Indian fashion company, has signed a licensing deal with Authentic Brands Group (ABG) to gain exclusive rights for the distribution and selling of Reebok products in Indian and other ASEAN nations.
The consideration towards purchase of inventory and other current assets and liabilities for the Aditya Birla Group company is expected to be around INR 75-100 crores.
Under the long-term agreement, Aditya Birla Fashion and Retail can sell the Reebok products through wholesale, e-commerce and Reebok branded retail stores in the select regions.
Through the deal, Aditya Birla Fashion and Retail is entering into India’s sports and activewear segment. The Indian fashion company said that the deal marks a major milestone in its journey, which has seen it evolve its portfolio into a powerhouse of brands across all the key fashion and lifestyle segments over the last many years.
Aditya Birla Fashion and Retail said that the addition of the Reebok sports and activewear brand will fill a key white space in its portfolio.
Ashish Dikshit — Managing Director of Aditya Birla Fashion and Retail 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.”
For Authentic Brands Group, the partnership is said to further help its global strategy for Reebok of assembling a network of major operating partners across the globe.
Aditya Birla Fashion and Retail will be partnering with Reebok Design Group (RDG), a newly-established global brand hub in Boston, for product design, innovation, development, and creative direction to fuel a unified brand voice and vision.
Corey Salter — Chief Operating Officer of 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 proposed licensing deal is contingent on due diligence, required statutory approvals, and the signing of definitive agreements.
It can be noted that in August 2021, Authentic Brands Group signed a deal worth up to €2.1 billion to acquire Reebok from Adidas. The deal is expected to be wrapped up in Q1 2022.