Mothercare and Reliance Brands Form Joint Venture for South Asia Operations

Mothercare plc and Reliance Brands Holding UK Limited, a subsidiary of Reliance Brands Limited, have come together to establish a new joint venture focused on products for parents and young children globally. This collaboration will possess the rights to the Mothercare brand and its intellectual property assets in India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

According to the agreement, RBL UK will own 51% of the joint venture, with Mothercare Global Brand Limited maintaining a 49% stake. RBL UK will purchase their share for a cash payment 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 in these South Asian regions will act as the franchisor for the Mothercare brand, leveraging the strengths of both companies to create growth opportunities.

In 2018, Reliance Brands purchased the rights to the UK brand Mothercare for India and now runs 87 stores in 25 cities, as well as a robust online 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.