Aditya Birla Lifestyle Brands Growth Strategy: Investing ₹300 Crore Every Year

by Priya Bhatiya

Posted on June 24, 2025

Aditya Birla Lifestyle Brands: Annual Investment and Growth Plans

Aditya Birla Lifestyle Brands Limited (ABLBL), recently demerged from Aditya Birla Fashion and Retail, has announced plans to invest ₹300 crore annually over the next five years. This strategic investment is aimed at doubling the company’s revenue and significantly expanding its retail footprint, with a strong focus on organic growth and building a portfolio of billion-dollar brands in the Indian fashion and lifestyle sector.

Key Details of the Investment Plan

• Annual Capex: ABLBL will allocate ₹300 crore each year, primarily toward expanding its retail network, with a smaller portion directed at enhancing internal capabilities and technology.
• Revenue Target: The company aims to double its revenue within five years. For FY25, ABLBL reported a revenue of ₹7,830 crore, with an operating profit margin of 15% and a net profit of ₹60 crore.
• Profitability Goals: Alongside revenue growth, ABLBL targets a three-fold increase in profitability over the next 3–5 years.
• Retail Expansion: The company plans to add 250–300 stores annually, leveraging its strong portfolio of brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, American Eagle, and Reebok.
• Brand Performance: Currently, two brands generate over ₹2,000 crore in annual sales each, while two others exceed ₹1,000 crore. The company expects at least two brands to reach ₹2,500 crore in revenue in the coming years.
• Market Position: With over 3,250 stores, ABLBL is the largest branded apparel player in India by revenue and store count.
• Strategic Focus: The growth strategy is centered on disciplined, cash flow-powered expansion, with no immediate plans for acquisitions. The company sees major growth potential in the Reebok brand and Van Heusen’s innerwear segment.

Leadership Vision

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized that India is entering a transformative growth phase, with consumption set to drive expansion. The company aspires to create India’s first portfolio of billion-dollar brands in fashion and lifestyle.

Market Debut

ABLBL debuted on the BSE and NSE on June 23, 2025, following its demerger. The listing marks a new chapter for the business, with a sharper strategic focus and more agile capital allocation.

In summary, Aditya Birla Lifestyle Brands’ ₹300 crore annual investment plan is a cornerstone of its ambition to double revenue, triple profitability, and cement its leadership in India’s branded fashion sector through aggressive retail and brand expansion.

Ref: Aditya Birla Lifestyle to double revenues in 5 years, invest Rs 300 cr