Aditya Birla Fashion and Retail Ltd. (ABFRL) is undergoing a major restructuring as part of a broader value unlocking strategy seen across the Aditya Birla Group. Following earlier steps like the Grasim demerger and the spin-off of Madura Fashion, the group has now reported a significant new development— the demerger of its Lifestyle Brands division.

The demerger, announced to be effective on May 22, will happen in a 1:1 shareholding ratio, with the Lifestyle Brands unit being carved out and listed as a separate entity. On the same day, price discovery for the newly listed entity will take place. Notably, all future contracts related to the existing entity will expire before this, on May 21.

The ABFRL board had approved the demerger move back on April 19. Once complete, Lifestyle Brands will be independently listed, allowing focused capital allocation and operational autonomy.

The Lifestyle Brands segment has been a key contributor to ABFRL’s business, accounting for nearly 50% of its revenues in Q3. It includes well-known names such as Madura Fashion, Peter England, US Polo and SNITCH.

Aditya Birla Group’s broader strategy here is clear—profitability enhancement through focused restructuring and efficient capital deployment. With approximately ₹1300 crore in free cash available, the group is prioritizing the creation of separate entities for high-growth and aggressively expanding segments.

Disclaimer:

The information provided in this blog is for informational and educational purposes only and should not be considered as financial or investment advice. Readers are advised to conduct their own research or consult with a financial advisor before making any investment decisions.