Mukesh Ambani’s Reliance Retail partners with Mothercare to strengthen baby products market in India

Reliance Retail (Image source: Reliance Industries)

New Delhi: India’s leading retailer Trusted Retail Ventures Ltd announced on Thursday the formation of a joint venture with Maternal care plc, global specialist in products for parents and young children. Reliance Brands Holding UK Limited (RBL UK), a wholly owned subsidiary of Reliance Brands Limited, will form the joint venture that will own the Mothercare brand and its related intellectual property assets in India and neighboring markets – Nepal, Sri Lanka, Bhutanand Bangladesh.

“Under the agreementRBL UK will hold a 51 percent stake in the joint venture, while Mothercare Global Brand Limited will retain a residual 49 percent stake,” a joint statement said.

RBL UK will acquire the stake for a cash consideration of GBP 16 million.

“This joint venture will act as a franchisor for the Mothercare brand in specific regions of South Asia, opening up new growth opportunities while leveraging the strengths of both organizations,” he said.

The Managing Director of Reliance Brands said that 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 in South Asia,” said Mehta.

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 as well as a strong presence on e-commerce platforms.

Clive Whiley, Chairman of 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 strength of the Mothercare brand”.