Mumbai: Mothercare plc (“Mothercare” or the “Company”), a global specialist in products for parents and young children, and Reliance Brands Holding UK  Limited (“RBL UK”), a wholly-owned subsidiary of Reliance Brands Limited, today announced the  formation of a new joint venture that will own the Mothercare brand and its intellectual property  assets related to the regions of India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

Under the agreement, RBL UK will hold a 51% stake in the joint venture, while Mothercare Global  Brand Limited will retain the residual 49% interest. RBLUK will acquire the stake for a cash  consideration of £16 million. This joint venture will act as the franchisor of the Mothercare brand  in the specified South Asian regions, unlocking new growth opportunities while leveraging the  strengths of both organizations.

“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,” said Darshan Mehta, Managing Director, Reliance  Brands Limited.

Reliance Brands first acquired the rights to the UK-bashttps://www.financialexpress.com/wp-content/uploads/2024/10/Image-2024-10-17T224048.518.jpg?w=440ed Mothercare brand for the Indian market  in 2018 and currently operates 87 stores across 25 cities, in addition to a strong presence on e commerce platforms.

Clive Whiley, Chairman of Mothercare, commented, “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.”