Mothercare and Reliance Brands Forge New South Asian Venture

Mothercare and Reliance Brands Holding UK Limited announce a joint venture to own the Mothercare brand in India, Nepal, Sri Lanka, Bhutan, and Bangladesh. Reliance Brands will hold a 51% stake while Mothercare retains 49%. The collaboration aims to expand Mothercare's presence across South Asia.

In a significant move to expand its footprint in South Asia, Mothercare plc has teamed up with Reliance Brands Holding UK Limited to form a new joint venture. This partnership will own the Mothercare brand and related intellectual property assets in India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

Under the agreement, Reliance Brands will hold a controlling 51% stake in the joint venture, with the remaining 49% interest retained by Mothercare Global Brand Limited. The stake will be bought for a cash consideration of £16 million, setting the stage for new growth opportunities through strengthened collaboration.

The joint venture is set to act as the franchisor of the Mothercare brand in these regions, leveraging the strengths of both organizations. Currently operating 87 stores across 25 Indian cities and significant online presence, Reliance's enhanced role marks a promising expansion phase for Mothercare in the region.

(With inputs from agencies.)