Reliance Brands Ltd. (RBL), part of Mukesh Ambani’s oil-to-telecom conglomerate Reliance Industries Ltd., entered a joint venture deal with the UK-based clothing retailer Superdry PLC, securing rights to the brand’s intellectual property in India, Sri Lanka, and Bangladesh and driving business in the said markets
The deal, signed by Reliance Brands Holding, UK, has valued Superdry’s licences and brand assets at 40 million pounds. This will result in Superdry PLC receiving gross cash proceeds of 30.4 million pounds (approximately 28.3 million pounds, net of fees and taxes) from Reliance Brands Holding, UK.
Reliance Brands Holding, UK, and Superdry will own 76% and 24% of the joint venture entity, respectively.
In 2012, RBL had inked a long-term franchise agreement with Superdry PLC to launch a casual wear brand in India. The new partnership will enable deeper collaboration between RBL and Superdry PLC, facilitating new sourcing channels, as well as introduction of India-centric product categories, cost optimization, and long-term investments in brand development, RBL said.
“Coupled with Reliance Brand’s appetite to invest in accelerating Indian consumption narrative, the deal paves way for Superdry’s future expansion in the country and neighbouring territories,” RBL said in statement on Wednesday.
As part of the association, Superdry UK will maintain a stake in the brand for the Indian territory and will continue to support brand development through sharing expertise in design, product development, and marketing.
“We are pleased to be announcing this IP agreement with our long-term partners, Reliance. India represents an incredible opportunity for Superdry, and our excellent existing relationship with Reliance means we will be able to hit the ground running. Under our new partnership, I am confident that the brand will continue to accelerate and build on our success to date to become a major force in the Indian fashion market,” Julian Dunkerton, Superdry’s CEO, and founder said.
Superdry is currently available across 200 points of sale in 50 Indian cities. Superdry’s offerings include t-shirts, and shirts for men and women, apart from shoes and accessories.
In 2019, Superdry expanded into sports and activewear under ‘Superdry Sport’, adding performance-driven products to its portfolio.
RBL is a subsidiary of Reliance Retail Ventures Ltd and began operations in 2007. Its current portfolio of brand partnerships comprises Armani Exchange, Bally, Coach, Diesel, Giorgio Armani, Hamleys, Hugo Boss, Hunkemoller, Iconix, Jimmy Choo, Kate Spade, La Martina, Pottery Barn, Pret A Manger, Salvatore Ferragamo, Satya Paul, Steve Madden, Superdry, among others.
RBL today operates 2,169 doors, split into 905 stores and 1,264 shop-in-shops in India.