AD-Times

2021-22
Company Name: ABFRL
 Retail Industry – Bird’s Eye View
Market Size (past few years) (US $ billion) ❑ India's e-commerce market is growing at YoY
Government Initiatives
The Government has announced its
decision to allow 51 per cent FDI in
multi-brand retail and 100 per cent
FDI in single-brand retail.
Indian E-commerce Market
rate of 5% with estimated revenue of $56.6 (US$ billion)
billion in FY 2021.
❑ India is largely an unorganized retail market,
contributing 88% to the total retail sector in
India.
❑ The organized retail market is currently valued
at $60 bn, while the unorganized market holds
the rest. The share of the organized retail
market is projected to increase to 22-25% by
2021, thereby reducing the unorganized retail
market share to 77%. The organized retail
market, therefore, has the potential to reach
approximately $140-160 bn.
Category-wise Break-up of Total Retail Market Online Retail in India
in FY19 (US$ billion)

Sources: https://www.ibef.org/industry/retail-india.aspx
https://www.investindia.gov.in/sector/retail-e-commerce
 ABFRL – Introduction
❑ Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the consolidation of the branded
apparel businesses of Aditya Birla Group comprising ABNL's Madura Fashion division and
ABNL's subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle
(MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Fashion and
Retail Ltd.

❑ ABFRL is a part of the Aditya Birla Group, a Rs.17320 Crore Indian multinational, in the
league of Fortune 500.

❑ Promoters holding marginally changed to

56.10% as of Jun 2021 quarter.
❑ FII/FPI have decreased their holdings by 0.04%
of holdings in Jun 2021 qtr.

Sources: http://www.abfrl.com/
https://trendlyne.com/equity/share-holding/1029/ABFRL/latest/aditya-birla-fashion-and-retail-ltd/
https://www.moneycontrol.com/india/stockpricequote/retail/adityabirlafashionretail/PFR
 ABFRL – SWOT Analysis
VISION

STRENGTHS
• Stocks where Mutual Funds Increased Holdings in Past Month
VALUES • Company with Zero Promoter Pledge

WEAKNESSES
• Broker downgrades in price or recommendation in the past one
month
• Declining Revenue every quarter for the past 2 quarters
• Decline in Net Profit with falling Profit Margin (QoQ)
•OPPORTUNITIES
MFs increased their shareholding last quarter

• Rising Delivery Percentage Compared to Previous Day

• Stock with low PE (PE <= 10)
• Brokers upgraded recommendation or target price in the past three
months
THREATS
• Stocks with Expensive Valuations according to the Trendlyne
Valuation Score
• Red Flags: Weakening Technical and Share Price Decline
• Increasing Trend in Non-Core Income

Source:https://trendlyne.com/equity/swot-buy-or-sell/1029/ABFRL/aditya-birla-fashion-and-retail-ltd/threats/
https://trendlyne.com/equity/swot-buy-or-sell/1029/ABFRL/aditya-birla-fashion-and-retail-ltd/threats/
http://www.abfrl.com/about/
 ABFRL– Marketing Mix
❑ ABFRL collaborates with Intellecap to promote
sustainable fashion
❑ The Company’s foray into branded ethnic wear
business includes Jaypore and strategic
partnerships with Designers ‘Shantanu & Nikhil’,
‘Tarun Tahiliani’ and ‘Sabyasachi’.
❑ The ‘Artisan Direct’ campaign will also
feature pan-India marketing campaigns
promoted by Ficci Flo, ABFRL’s CEO of
Pantaloons and Jaypore Sangeeta
Pendurkar told ET Retail in an interview.

❑
❑ Online presence through offers value for money strategy to all its
customers.
websites ❑ offer discounts during festive season. They
❑ 130 fashion stores in 40 ❑
also have end of year clear off sales.
follows relationship marketing where
cities and towns premium is charged for the in-store service
❑ Retail space of 1.7 million offered by the shop. Relationship marketing
has helped bring customer service, quality and
square feet, which is among improving visibility into closer alignment.
the largest in India.

Sources: https://in.fashionnetwork.com/news/Abfrl-s-jaypore-partners-with-creative-dignity-to-promote-artisans-online,1244054.html
https://apparelresources.com/business-news/retail/abfrl-collaborates-intellecap-promote-sustainable-fashion/
https://www.mbaskool.com/marketing-mix/services/17278-pantaloons.html
 ABG - BCG Matrix
High Low
Relative Market Growth Rate

High

?
Low

Relative Market Share

Sources: https://bcgmatrixanalysis.com/bcg-matrix-of-aditya-birla-group/
https://www.slideshare.net/skdhake41/aditya-birla-bcg-matrix
 Brand Communication
ABFRL acquired additional 7.69% stake in Finesse to become 58.69% stakeholders.Aditya
Birla Fashion and Retail Announces Strategic Partnership with Designer “Tarun Tahiliani”
to enter Men’s Premium Ethnic wear. Acquisition of 51% in Sabyasachi Couture

Birla Carbon introduces 'CONTINUA‘.

Continua is all about sustainable innovation and collaboration
Continua product availability will exceed 70,000 tones annually in the next five years

ABFRL has a network of 3031+ stores with a presence across approximately 25,000 multi-
brand outlets with 6,500+ point of sales in department stores across India.

ABFRL wins Gold for Excellence in Internal Communications at Imagexx 2021 Awards

Sources: http://www.abfrl.com/awards-and-recognitions/
http://www.abfrl.com/about/
https://www.indiatoday.in/pr-newswire?rkey=20210525AE87570&filter=4315
https://en.wikipedia.org/wiki/Aditya_Birla_Fashion_and_Retail
 News and Brand Equity
❑ Aditya Birla Fashion and Retail launches its brand ‘ABOF’ on Flipkart and Myntra
❑ Louis Philippe brings luxury to casual fashion with the launch of “LOUIS” Premium
Casual Wear
❑ JAYPORE unveils limited-edition `Rabari collection’ from Kutch artisans
❑ Braced the 2nd wave impact with resilience; swifter recovery over first wave; 150%
revenue growth YOY
❑ Strong growth across businesses leading to highest ever consolidated profit for first
quarter, despite a Covid-hit quarter
❑ Consolidated Revenue at Rs.4,632 Crore (grew 8 per cent year on year)
❑ Consolidated Net Profit at Rs.302 Crore (grew 52 per cent year on year)
❑ Active customer base at 25 million (grew 30 per cent year on year) aided by focus on
granular retail growth across all businesses
❑ Continuing track record of consistent growth in profit delivery through market and
macroeconomic cycles, backed by the diversified business model and synergies
❑ Businesses seeing benefits of digital focus; launched first of its kind App offering
customers a seamless and personalized experience to transact and get serviced across
all products of the platform
❑ Businesses leveraging partnerships to drive customer acquisition and growth at scale
Sources: http://www.abfrl.com/media/
https://www.adityabirla.com/media/media-releases/aditya-birla-capital-reports-strong-results-for-quarter-ended-june-2021
Good Luck