Mothercare Plc which is into products for parents and young children, and Reliance Brands Holding UK Ltd., a wholly-owned subsidiary of Reliance Brands Ltd., 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% stake in the joint venture, while Mothercare Global Brand Ltd. will retain the residual 49% interest. RBLUK will acquire the stake for a cash consideration of £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, RBL said in a statement.
“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,“ said Darshan Mehta, Managing Director, Reliance Brands Ltd.
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, 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.”
“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,” he added.
Published – October 17, 2024 11:37 pm IST
