Pantaloons, now to be called Aditya Birla Fashion and Retail Ltd.

India: Indian premium clothing retail chain, which was earlier owned by Future Group has been acquired by Aditya Birla Nuvo Ltd (ABNL) on January 13, 2016 and with immediate effect changed the name to Aditya Birla Fashion and Retail Ltd.

Earlier in 2012, Aditya Birla Nuvo got into an agreement with the Future Group and invested INR1600 Crore into Pantaloons and thereby acquiring a 72 % Stake in the retail chain. The name change will further improve the effectiveness of the agreement between the ABNL and Madura Garments Lifestyle Retail Company Limited.

According to TechSci Research the Objective of the ABNL is to consolidate the retail and apparel business of the Aditya Birla group with one single entity to become India’s largest pure play branded apparel company, to unlock the value and accrue synergy benefits of the business and which in turn will help the business to raise additional capital.

The apparels category being the largest contributor to the organized retailing market is expected to grow at CAGR of 18 % over next few years will help ABNL to increase its market share and value in the retail market.

 Also, this move brings India's branded menswear and womenswear players together

Furthermore, the acquisition will accelerate the growth of the business and will help to exploit emerging opportunities shown by the growing Indian apparel market and for meeting the future requirement of the industry, the company should plan to open new stores to meet the demand.