Lumba has a point. The pandemic forced retailers to re-examine formats and become more digitally savvy. The likes of Aditya Birla and Reliance even went on an acquisition spree. LifeStyle International, however, stayed the course. “We said it is important that our formats stand the test of time. You don’t get this scale unless you are steadfast and listen to customers and partners.” In past one year, Reliance Retail has spent $1.05 billion on buying Abu Jani Sandeep Khosla Designers, Purple Panda Fashions and Clovia, among others. Aditya Birla Group, on the other hand, has acquired majority stakes in designer brands House of Masaba, Sabhyasachi and Tarun Tahiliani. The acquisitions will help them look beyond casual fashion and build scale. These retailers have also signed licensing deals with global brands such as Michel Kors, Kate Spade, Emporio Armani and Hackett London. Aditya Birla has announced a partnership with French Galeries Lafayette for opening luxury department stores in India.

But inorganic growth doesn’t excite Lumba. “We are quite happy with existing formats and are seeing huge traction, relevance and room for growth,” he says. Acquisitions, he says, are a challenge. “If we have a few brands which can grow at a healthy 15-20% CAGR, we can almost double our turnover in three-and-a-half years to ₹25,000 crore. We are not closed to acquisitions but are not actively seeking (out companies to buy),” he adds.

Calibrated Growth

Retail industry experts estimate a huge room for growth as India has a huge mass of consumers which does not have access to brands. LifeStyle International also believes its portfolio has room for healthy growth. While Max, the mid-market format, leads its Tier II-III penetration strategy, the retail major has started taking its premium format, LifeStyle, to non-metros such as Indore, Salem and Patiala that have a decent appetite for brands.

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