Mothercare’s operations in South Asia have undergone a strategic change with the establishment of a joint venture with Reliance Brands Holding UK (RBL UK). The new company, which Reliance owns 51 per cent of and Mothercare owns 49 per cent of, will oversee the Mothercare brand in Bangladesh, Bhutan, Nepal, Sri Lanka, and India. The stake will be purchased by RBL UK for US $ 21 million in cash.
Darshan Mehta, managing director of Reliance Brands, stated, “For many years, parents in India have trusted Mothercare, and this joint venture ushers in an exciting new era of our collaboration.”
In 2018, Reliance Brands initially purchased the Indian market rights to the Mothercare brand, which is situated in the United Kingdom. across addition to having a significant online presence, it currently runs 87 shopfronts across 25 cities.
“Through an even stronger working relationship with our current valued franchise partner, Reliance, today’s agreement enhances our operations in South Asia and highlights the inherent value of the Mothercare brand,” stated Clive Whiley, chairman of Mothercare.
Reliance Brands, a division of Reliance Retail Ventures, was founded in 2007 with the goal of establishing and growing luxury brands for high-end markets in fashion and lifestyle.