Reliance Brands and Mothercare enter into JV to expand in South Asia

In a $21 million deal, Mothercare Plc, a British retailer specializing in products for parents and young children and Reliance Brands’ UK arm announced a joint venture. This joint venture company will own Mothercare brand and its intellectual property assets in Nepal, Sri Lanka, Bhutan, Bangladesh besides India.

Under this agreement, Reliance Brands Holding UK (RBL UK) will control majority of stakes (51%), while Mothercare Global Brand will retain remaining the share. Reliance Brands’ UK subsidiary will acquire the stakes for £16 million ($20.85 million), both the companies shared in a 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 organizations,” said the release.

“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 its presence on ecommerce platforms.

Clive Whiley, chairman of Mothercare, said, “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.”