India's Aditya Birla Fashion to buy 51% stake in House of Masaba

India's Aditya Birla Fashion and Retail (ABFRL) said on Friday it would buy a 51% stake in House of Masaba Lifestyle for about 900 million rupees ($12.14 million), as it seeks to strengthen its presence in the fast growing segment.

Top Indian retailers ABFRL and billionaire Mukesh Ambani-owned Reliance Industries Ltd's retail unit have gone on a shopping spree for premium brands over the past year as they compete for a stronger foothold in the fashion space.

ABFRL picked up a 51% stake in luxury wedding wear brand Sabyasachi in January last year, while Reliance Retail bought 52% of designer label Ritu Kumar in October.

Founded by Masaba Gupta in 2009, House of Masaba Lifestyle sells under the brand name Masaba and offers a wide array of products ranging from cosmetics to clothes. Some of Masaba's outfits are priced as high as 90,000 rupees, according to her website.

ABFRL and House of Masaba Lifestyle have entered a binding term sheet agreement, marking the Aditya Birla Group company's entry into the beauty & personal care market in India, ABFRL said.

House of Masaba Lifestyle is targeting annual revenues of around 5 billion rupees in the next five years and will be scaled predominantly through online platform, ABFRL said.