Mothercare plc, Reliance Brands Holding UK Limited announce strategic joint venture for South Asia
Oct 17, 2024
Mumbai (Maharashtra) [India], October 17 : Mothercare plc ("Mothercare" or the "Company"), a global specialist in products for parents and young children, and Reliance Brands Holding UK Limited ("RBL UK"), a wholly-owned subsidiary of Reliance Brands Limited, today 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.
According to the press release Mothercare, 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. RBLUK will acquire the stake for a cash consideration of Pound 16 million.
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 organizations.
"Mothercare has been a trusted name for parents in India for years, and this joint venture marks an exciting new chapter in our partnership. It's been incredibly rewarding to work alongside the talented Mothercare team, and this deeper collaboration reflects the strong relationship we've built over time. 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 Limited.
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, commented, "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. 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."
