Amid 'strategic acceleration', Aditya Birla Group launches premium French retailer in India

Mumbai, Oct 15 (PTI) Kumar Mangalam Birla on Wednesday said the USD 67-billion Aditya Birla Group, led by him, is in the midst of a "strategic acceleration".

Speaking at the launch event of French luxury retailer Galeries Lafayette's first store in the country, Birla said the core businesses in the conglomerate are poised for transformational growth, while new ventures are growing with momentum.

"Our Group, as you know, is currently in the midst of the next phase of strategic acceleration," he said, adding that the axis of its portfolio is "slowly but surely being tilted", expanding in both scale and strategic breadth.

"The combination of mature operating companies and agile, younger businesses is shaping a platform designed for long-term value creation," Birla said, listing out newer businesses started recently.

He said the group entered the paints business last year with Birla Opus and also launched Indriya, a jewellery retail chain.

Stating that India today stands out for the size, energy, and untapped potential of its consuming class, Birla said the customer base is increasingly more discerning, aspirational, and brand-conscious.

The group has partnered with the 125-year-old French company, which runs a slew of assets including an iconic departmental store in Paris, and rented 90,000 sq ft space in two buildings off Dalal Street, which houses Asia's oldest stock bourse.

The place is increasingly witnessing a proliferation of art and heritage, and is already home to labels like Hermes and Louis Vuitton.

Birla said the Indian luxury market is at a threshold of transformation and poised to grow fourfold to USD 90 billion by 2030.

"With one of the fastest-growing affluent populations in the world and a new generation of globally exposed consumers, the appetite for high-end experiences has never been stronger," he said.

As the economy matures and its cultural confidence deepens, the "moment is right to redefine luxury retail".

"At the Aditya Birla Group, we see this as an opportunity to unlock a new wave of growth," Birla said.

Nicolas Houze, the Executive Chairman of the Galeries Lafayette , said the size of the opportunity presented in the young and ambitious country attracts the group to India.

He said it chose Mumbai, the "city of dreamers", because of its potential.

The next store under the brand will be opened in New Delhi in the next 24-36 months, Sathyajit R, the chief executive of International Business at Aditya Birla Group's fashion arm ABFRL said.

He said that the two companies have entered into a 15-year license agreement under which the French company will be paid a royalty.

If the rules governing foreign ownership of multibrand retailers change, the two parties may look at other ways of working together, he added.

He sounded confident of success with this venture, pointing out that there is latent demand for the wares and claimed that there is no competition in the exclusive segment. PTI AA MR