In a significant corporate restructuring move, Aditya Birla Fashion and Retail Limited (ABFRL) has officially completed the demerger of its Madura Fashion & Lifestyle (MFL) business into a newly formed and wholly-owned subsidiary — Aditya Birla Lifestyle Brands Limited (ABLBL). The Scheme of Arrangement, as previously notified and approved by relevant stakeholders and regulators, became effective from May 1, 2025.

Background of the Demerger

This demerger is part of a strategic transformation initiative aimed at creating distinct business entities for sharper focus, operational agility, and enhanced shareholder value. According to the Scheme, all employees associated with the MFL business have now been transferred to Aditya Birla Lifestyle Brands Limited, thus realigning workforce structures in accordance with the new corporate design.

As part of this shift, Mr. Vishak Kumar, who served as a Whole-time Director (WTD) and Key Managerial Personnel (KMP) at ABFRL, has been formally relieved of his position from the end of business hours on April 30, 2025, and transitioned to the newly formed company.

Appointments in Aditya Birla Lifestyle Brands Limited (ABLBL)

The Board of Directors of ABLBL, in their meeting held on May 1, 2025, passed a resolution to confirm two major leadership appointments that reflect continuity and vision for the new entity:

1. Mr. Ashish Dikshit (DIN: 01842066) has been appointed as Managing Director of ABLBL, while continuing in his existing role as Managing Director of ABFRL.

2. Mr. Vishak Kumar (DIN: 09078653) has been appointed as Deputy Managing Director and Chief Executive Officer of ABLBL.

These appointments are subject to necessary regulatory and statutory approvals, in line with applicable provisions under the SEBI Listing Regulations and the circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Regulatory Compliance and Disclosures

The companies have acted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and associated circulars. The communication, shared with BSE Limited and the National Stock Exchange of India, outlines all material changes as per corporate governance protocols.

Additionally, both Mr. Dikshit and Mr. Kumar have provided confirmations that they are not debarred by SEBI or any other regulatory authority from holding directorial positions.

Detailed Profile of Mr. Ashish Dikshit

Mr. Ashish Dikshit is an IIT-Madras alumnus, an MBA from IIM-Bangalore, and has completed the Advanced Management Program from Harvard Business School. His career began at Asian Paints, before joining the Madura Fashion & Lifestyle (MFL) division of ABFRL. With over 30 years of industry experience, he has served in multiple functional roles including Sales, Brand Management, Sourcing, and Supply Chain.

He was appointed the President of MFL in 2007 and became CEO in 2012. Subsequently, he served as the Principal Executive Assistant to the Chairman of Aditya Birla Group, gaining broad exposure across sectors like Telecom, Retail, Financial Services, Metals, and Chemicals.

In 2011, Mr. Dikshit received the Outstanding Leader Award from the Chairman of the Aditya Birla Group, recognizing his exceptional contributions. He assumed the role of Managing Director of ABFRL in 2018, which he continues to hold alongside his new appointment.

Detailed Profile of Mr. Vishak Kumar

Mr. Vishak Kumar is an alumnus of IIM Bangalore and holds a Computer Engineering degree from BIT Ranchi. He joined the Madura division in 1995 as a Management Trainee and has since contributed immensely over a 30-year career. His responsibilities have spanned sales, marketing, and retail operations.

Previously, he served as the CEO of Aditya Birla Retail Limited, where he led the transformation of the ‘More’ supermarket and hypermarket chain. He was then appointed CEO of Madura Fashion & Lifestyle.

Among his accolades, Mr. Kumar has been a recipient of the Aditya Birla Group Chairman's Award for Outstanding Leadership (2014), the Aditya Birla Fellow title (2015), and was recognized as "Leader of Leaders" in 2022.

Strategic Impact of the Demerger

This demerger is expected to unlock operational synergies by allowing each entity to focus independently on its core strengths:

• ABFRL will now focus on emerging lifestyle brands, digital-first platforms, and retail expansions.

• ABLBL will inherit the Madura legacy, managing renowned brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England under a unified and focused business strategy.

The move reflects a broader trend among Indian conglomerates toward business segregation, enabling specialized verticals to attract independent investor interest, pursue targeted growth opportunities, and enhance stakeholder transparency.

Operational Transition and Human Resources

From an HR perspective, all employees of the MFL business have now been seamlessly integrated into ABLBL. This is a critical move to ensure continuity of operations, preservation of institutional knowledge, and employee morale.

The leadership reshuffle also reflects a deliberate move to retain continuity in management and ensure a smooth transition during this restructuring.

Forward-Looking Perspective

This development is expected to have long-term positive implications for stakeholders including investors, employees, customers, and partners. The new structure will likely streamline reporting, facilitate better brand focus, and enhance strategic accountability.

With seasoned leadership at the helm, the Resulting Company — Aditya Birla Lifestyle Brands — is well-positioned to become a market leader in premium and mid-premium fashion segments, building on the heritage of its globally recognized brands.

Conclusion

The effective demerger of the MFL business from ABFRL to ABLBL marks a major corporate milestone for the Aditya Birla Group. The leadership of Mr. Ashish Dikshit and Mr. Vishak Kumar in their respective roles is poised to bring continuity, vision, and execution excellence as the new entity embarks on its journey.

This restructuring move reinforces the Group’s commitment to delivering enhanced shareholder value, operational agility, and business clarity across its diverse portfolio. All regulatory disclosures have been made in alignment with SEBI guidelines, setting a strong precedent in governance and transparency.

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