Giving a leg up to the online fashion retail business the Competition Commission of India has approved ₹1,500 crore deal between Aditya Birla and Flipkart. India’s antitrust regulator said in a tweet “Commission approves acquisition stake of 7.8% in Aditya Birla Fashion and Retail Ltd. by Flipkart Investment Private Ltd.”
The company operates Pantaloons and owns the office wear brands like Peter England and Allen Dolly. The deal which give the company much needed capital to run its business as the stores were shut for almost whole year in 2020 owing to the pandemic.
ABRFL have a total of 3,004 stores across the county and they will use this capital in improving their balance sheet, scale up existing business and will probably mark growth in categories like inner wear, athleisure, casual and ethnic wear. The CEO of Flipkart Mr. Kalyan Krishnamurthy said that the company will use the capital in making a wide range of quality products that too at a affordable rates.