Mukesh Ambani (File Photo: PTI)
Every time Reliance Industries Chairman Mukesh Ambani does any work, his flag flies all over the world. Be it Anant Ambani’s marriage or Reliance Jio becoming India’s largest telecom company. Now a subsidiary of Reliance Industries is going to start a new business, the sound of which will be heard in many countries of the world.
Mukesh Ambani’s Reliance Retail is today the largest retail company in the country. His company will form a joint venture with global brand Mothercare PLC. The company formed after this will do business not only in India but also in neighboring countries like Nepal, Sri Lanka, Bhutan and Bangladesh.
Mukesh Ambani to dominate the joint venture
Mothercare is famous all over the world for manufacturing products related to toddlers and parents. Reliance Retail Ventures Limited of Reliance Group will hold a 51 per cent stake in the joint venture it will form with Mothercare PLC. While Mothercare will retain the remaining stake.
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Not only this, the work of creating this joint venture will be done through Reliance Brands Holding UK Limited (RBL UK), a wholly owned subsidiary of Reliance Brands Limited. This joint venture will have all the intellectual property rights of the Mothercare brand in India and other neighboring countries.
This is how the deal will be closed and this is how the business will expand
RBL UK will acquire this stake for a cash consideration of £16 million. This joint venture will act as a franchise for the Mothercare brand in South Asia. The new joint venture will benefit from Reliance’s strong position in this area and Mothercare’s global brand image and create new growth opportunities.
Darshan Mehta, MD, Reliance Brands, says Mothercare has been a trusted name for parents in India for years. This joint venture begins an exciting new chapter in our partnership. Reliance Brands first acquired the rights to the famous British brand Mothercare for the Indian market in 2018. The company currently has a very strong presence on e-commerce platforms. It also has 87 stores in 25 cities in the country.
