India’s top retailer, Reliance Retail Ventures Ltd, announced a joint venture with Mothercare plc, a global expert in products for parents and young children on Thursday, October 17.
RBL UK to own mothercare in India, Nepal and others
Reliance Brands Holding UK Limited (RBL UK), a subsidiary of Reliance Brands Limited, would form a joint venture to own the Mothercare brand and its intellectual property assets in India and nearby markets in countries—Nepal, Sri Lanka, Bhutan, and Bangladesh.
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According to Economic Times, a joint statement has been released, “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.”
Meanwhile, RBL UK will buy the stake for 16 million British pounds in cash. “This joint venture will serve as the franchisor of the Mothercare brand in South Asia, creating new growth opportunities by combining the strengths of both organisations,” it said.
Reliance aims to expand Mothercare in South Asia
Furthermore, Reliance Brands Managing Director stated that Mothercare has been a reliable brand for Indian parents for years, and this joint venture is an exciting new chapter. Mehta added, “I’m excited about the opportunities this new era brings as we continue to expand the brand’s presence across South Asia.”
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In addition to the collaboration, Clive Whiley, Chairman of Mothercare, mentioned, “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”.
Notably, Reliance Brands got the rights to the UK-based Mothercare brand for India in 2018. They now run 87 stores in 25 cities and have a strong online presence.
