Reliance Brands and Mothercare form joint venture to expand in South Asia

Mumbai, October 17, 2024 (TBB Bureau): In a significant move to bolster its presence in the South Asian market, Reliance Brands Holding UK Limited (RBL UK), a wholly-owned subsidiary of Reliance Brands Limited, has announced a joint venture with Mothercare Global Brand Limited. This new entity will own the Mothercare brand and its intellectual property across India and neighboring regions, including Nepal, Sri Lanka, Bhutan, and Bangladesh.

According to a joint statement, RBL UK will hold a majority 51% stake in the joint venture, while Mothercare Global Brand Limited will retain a 49% stake. The deal sees RBL UK acquiring its stake for a cash consideration of £16 million. The joint venture will function as the franchisor for the Mothercare brand in these key South Asian regions.

“This partnership unlocks new growth opportunities, allowing us to leverage the combined strengths of both organizations,” the statement said. The collaboration is expected to drive brand expansion and further solidify Mothercare’s footprint in a rapidly growing market for children’s products and parenting solutions.

Reliance Brands Limited Managing Director Darshan Mehta expressed enthusiasm about the deal, noting, “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.”

Reliance Brands first acquired the rights to the UK-based Mothercare brand for the Indian market in 2018. Since then, it has successfully operated 87 stores across 25 cities in India, while also establishing a robust online presence through various e-commerce platforms. The brand has become a go-to destination for parents seeking high-quality products for their children.

Clive Whiley, Chairman of Mothercare, echoed Mehta’s sentiments, stating, “Today’s agreement strengthens our operations in South Asia through an even closer working relationship with Reliance, our existing valued franchise partner. This deal underlines the intrinsic value of the Mothercare brand strength.”