India’s leading retailer Reliance Retail Ventures Ltd on Thursday announced to form joint venture with Mothercare plc, a global specialist in products for parents and young children. Reliance Brands Holding UK Limited (RBL UK), a wholly-owned subsidiary of Reliance Brands Limited, will form the JV that will own the Mothercare brand and its intellectual property assets related to India and neighbouring markets — Nepal, Sri Lanka, Bhutan, and Bangladesh.
“Under the agreement, RBL UK will hold a 51 per cent stake in the joint venture, while Mothercare Global Brand Limited will retain the residual 49 per cent interest,” said a joint statement.
RBL UK will acquire the stake for a cash consideration of 16 million British pounds.
“This joint venture will act as the franchisor of the Mothercare brand in the specified South Asian regions, unlocking new growth opportunities while leveraging the strengths of both organisations,” it said.
Reliance Brands Managing Director said Mothercare has been a trusted name for parents in India for years, and this joint venture marks an exciting new chapter in our partnership.
“I’m excited about the opportunities this new era brings as we continue to expand the brand’s presence across South Asia,” said Mehta.
Reliance Brands first acquired the rights to the UK-based Mothercare brand for the Indian market in 2018 and currently, operates 87 stores across 25 cities, in addition to a strong presence on e-commerce platforms.
Clive Whiley, Chairman of Mothercare, said, “Today’s agreement strengthens our operations in South Asia through an even closer working relationship with Reliance, our existing valued franchise partner, and underlines the intrinsic value of the Mothercare brand strength”.
Source: Economic Times