Reliance Brands Acquires Majority Stake In Mothercare Joint Venture
JV to Own Mothercare Brand and All Its IP Assets for India, Nepal, Sri Lanka, Bhutan and Bangladesh Region
Mothercare plc, a global leader in products for parents and young children, has announced a strategic joint venture with Reliance Brands Holding UK Limited, a wholly-owned subsidiary of Reliance Brands Limited. This partnership will oversee the Mothercare brand and its intellectual property assets across India, Nepal, Sri Lanka, Bhutan, and Bangladesh.
Under the terms of the agreement, RBL UK will hold a 51% stake in the joint venture, while Mothercare Global Brand Limited will retain the remaining 49% interest. RBL UK will acquire its stake for a cash consideration of £16 million. This joint venture will act as the franchisor for the Mothercare brand in the specified South Asian regions, unlocking new growth opportunities while capitalizing on 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. Working alongside the talented Mothercare team has been incredibly rewarding, 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 of 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 various 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. We are now renewed in our confidence regarding the opportunity that this reinvigorated joint venture presents. We look forward to collaborating more closely with Reliance Brands as our joint venture partner and not just as a franchisee in the region.”
Key Highlights of the Joint Venture:
• Ownership and Management of Intellectual Property: The new entity, JVCO 2024 Ltd, will own the Mothercare brand and related intellectual property assets for India, Nepal, Sri Lanka, Bhutan, and Bangladesh.
• Franchise Operations in South Asia: The joint venture will manage and franchise the Mothercare brand in these regions, ensuring brand consistency and enhanced customer engagement.
• Strategic Investment: RBL UK’s acquisition of a 51% stake in the joint venture highlights the strength of the partnership and Reliance’s commitment to growing the Mothercare brand.
