 "Reliance Brands and Mothercare form new joint venture for South Asia")
Mothercare, a global specialist in products for parents and young children, and Reliance Brands Holding UK (RBL UK), a wholly-owned subsidiary of Reliance Brands, on Thursday announced the formation of a new joint venture that will own the Mothercare brand and its intellectual property assets related to the regions of India, 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 will retain the remaining 49 per cent interest. RBL UK will acquire the stake for a cash consideration of £16 million, according to a joint press release.
“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,” the release said.
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.
“I’m excited about the opportunities this new era brings as we continue to expand the brand’s presence across South Asia," said Darshan Mehta, managing director, Reliance Brands.
Clive Whiley, chairman of Mothercare, said that the agreement strengthens its operations in South Asia through an even closer working relationship with Reliance. “We have renewed confidence in the opportunity that this reinvigorated joint venture now presents. We look forward to working even more closely with Reliance Brands as our joint venture partner and not just as a franchisee in the region, moving forward together,” Whiley added.