Mumbai: Mothercare plc, a global leader in parenting and young children's products, partners with Reliance Brands Holding UK Ltd to form a new joint venture, JVCO 2024 Ltd, aimed at strengthening the brand’s presence across South Asia. The joint venture will manage the mothercare brand and all related intellectual property (IP) assets for India, Nepal, Sri Lanka, Bhutan, and Bangladesh, creating new opportunities for growth in the region.
Under the agreement, Reliance Brands Holding UK (RBL UK) will acquire a 51 per cent stake in the joint venture for a cash consideration of £16 million, while Mothercare Global Brand Limited will retain a 49 per cent stake. This strategic move further solidifies the long-standing partnership between the companies, with RBL UK set to take on franchising responsibilities to ensure brand consistency and deepen customer engagement.
Reliance Brands Ltd, managing director, Darshan Mehta shared his excitement about the deal: “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. I’m excited about the opportunities this new era brings as we continue to expand the brand’s presence across South Asia."
Reliance Brands first brought Mothercare to India in 2018, and currently operates 87 stores across 25 cities, as well as having a strong e-commerce presence. The joint venture aims to expand its footprint in the region while retaining the quality and heritage associated with the Mothercare name.
Mothercare chairman, Clive Whiley commented on the significance of the agreement: "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. We look forward to working even more closely with Reliance Brands as our joint venture partner and not just as a franchisee in the region, moving forward together."
Key highlights of the joint venture:
- Ownership and Management of IP Assets:JVCO 2024 Ltd will hold all rights to the Mothercare brand and related IP for the specified regions.
- Franchise Operations: The joint venture will oversee franchising and brand management across South Asia, ensuring a consistent customer experience.
- Strategic Investment: RBL UK’s 51 per cent stake acquisition underscores the partnership’s strength and Reliance’s commitment to growing Mothercare’s reach.
This collaboration is set to bring fresh momentum to the Mothercare brand in South Asia, blending Reliance’s market expertise with Mothercare’s global reputation to offer quality products to parents across the region.
