- 16 Feb 2022
- ICICIdirect Research
ABFRL to invest in digital first brandsABFRL - 201 Change: -2.70 (-1.32 %)
News: As per Mint, online version, ABFRL expects 10-15% of its revenues from online first brands over the next five years.
Views: The company had recently announced plans to set up a separate entity for investing in digital first brands. The company is looking to invest in brands (revenue size of Rs.10-100 crore). The company is planning to invest in eight to 10 brands in the next 12-15 months and organically launch two brands in identified white spaces in its portfolio. Over the next three to five years, the company is planning to have a portfolio of 25-30 digital first brands. Initially, the company plans to invest in these brands and post these brands gain scale, the company plans to bring in external capital to make these brands larger. Through its investment in digital first brands the company will be able to tap the new age customers who are looking for products online and fill the gaps in its product portfolio and be a very large player in the branded segments for fashion and related discretionary categories.