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Flipkart Investments will pick up 7.8 percent stake in Aditya Birla Fashion and Retail Limited (ABFRL) with an investment of Rs 1,500 crore.

The equity capital will be raised at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13 percent upon completion of the issuance.

ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition with renewed vigour, said a statement.

The company plans to scale-up its play in emerging high-growth fashion categories including innerwear, athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company.

Furthermore, ABFRL will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities, positioning it amongst the most comprehensive omni-channel fashion players in the country.

Through this partnership, the Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra, deepening its relationship with ABFRL, and enhancing the range of premium international and Indian brands on offer.

Flipkart’s technology prowess will enhance ABFRL’s omni-channel capabilities, enriching customer experiences while continuing to provide access to premium loyalty programs and affordability constructs for which Flipkart is known.

Speaking on this development, Kalyan Krishnamurthy, CEO, Flipkart Group, said, “Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country.

“We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India,” he said.

Kumar Mangalam Birla, Chairman Aditya Birla Group said: “This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”

He said that fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class, favourable demographics, rising disposable incomes and aspiration for brands.

This partnership is a critical component of that strategy, Birla added.

The transaction is subject to regulatory approvals.

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Throw light on your design capabilities. What are key design factors which stand out as your USP?

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Entire collection is made in keeping with the season’s colours, styles, and trends, The product line consists of kurtis, dresses, tunics and maxis. The price range starts from Rs 749 and goes up to Rs 4,999.

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The accessory category has grown to have a special section for itself in any department store though as compared to apparels, the space is still relatively less. Perhaps in years to follow, we shall see a dedicated floor for accessories keeping in mind the increase in demand for them.

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We specialize in apparel for men, women and kids, which makes up 80 percent of our business. Apart from this we have lifestyle products, accessories, home furnishings and household products that give us the other 20 percent of our revenue.

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“Our Noida office is also the central design hub. Designs and raw materials are shipped out to exclusive third party manufacturing units which have been incubated by us and work exclusively with us. Our skillful use of technology helps us ensure the industry’s most efficient mind-to-market and extremely tight inventory management. On the online front, we’ve innovated to deliver some of the best sales conversion rates. These innovations have ensured the company is operationally profitable since inception,” she adds.

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