Aditya Birla Fashion Retail receives NCLT nod for demerger

Aditya Birla Fashion and Retail (ABFRL) announced that the National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned the Scheme of Arrangement, approving the demerger of its Madura Fashion & Lifestyle (MFL) business into Aditya Birla Lifestyle Brands Limited (ABLBL). The order, dated March 27, 2025, facilitates the separation of MFL into a separately listed entity, aiming for sharper strategic focus and independent value creation. Effective April 1, 2024, the demerger will allow ABFRL to house its multiple growth platforms. ABLBL will focus on the MFL business that built a leadership position and has a proven track record of delivering revenue growth, profitability, strong free cash flows and high return on capital. The company also announced an investor and analyst meeting scheduled for April 3, 2025, to discuss the implications of the demerger.