Mothercare plc, a global specialist in products for parents and young children and Reliance Brands Holding UK Limited, a wholly-owned subsidiary of Reliance Brands Limited, have announced the formation of a new joint venture. This partnership will own the Mothercare brand and its intellectual property assets in 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 a 49% interest. RBL UK will acquire its stake for a cash consideration of £16 million.
“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,” Darshan Mehta, managing director, Reliance Brands Limited, said.
The joint venture will serve as the franchisor for the Mothercare brand in these South Asian regions, creating growth opportunities by combining the strengths of both companies.
Reliance Brands initially acquired the rights to the UK-based Mothercare brand for the Indian market in 2018 and currently operates 87 stores across 25 cities, alongside a strong e-commerce presence.
“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,” Clive Whiley, Chairman, Mothercare, said.