Reliance Brands buys majority ownership of Superdry IP for Indian territory
Reliance Brands, a subsidiary of the Mukesh Ambani-led retail conglomerate, has entered into a joint venture with UK-based Superdry plc to acquire the intellectual property (IP) assets of Superdry for the Indian, Sri Lankan, and Bangladeshi territories.
This strategic move aims to capitalize on the growing affluence and changing consumption patterns of Indian shoppers.
Ownership Structure: In this joint venture, Reliance Brands' UK subsidiary (RBUK) and Superdry will hold ownership stakes of 76% and 24%, respectively.
Financial Transaction: Reliance Brands will pay £40 million (Rs 404.14 crore) for the Superdry IP assets in the Indian territory.
Superdry plc is expected to receive gross cash proceeds of £30.4 million (Rs 307.14 crore), which equates to approximately £28.3 million after fees and taxes.
Expansion Plans: Superdry currently operates through 200 points-of-sale in 50 Indian cities and has a significant online presence, reaching over 2,300 cities in India.
This makes Superdry India operations the largest franchisee network of the brand globally.
Strategic Benefits: The partnership between Reliance Brands and Superdry plc aims to deepen collaboration and facilitate various aspects, including new sourcing channels, introducing India-specific product categories, optimizing costs, and making long-term investments in brand development.
Brand Support: Superdry UK will maintain a stake in the brand for the Indian territory and continue to provide support in design, product development, and marketing to facilitate brand development in India.
Superdry's History in India: Superdry first entered the Indian market in 2012, and with this new joint venture, it intends to accelerate its growth and establish itself as a major player in the Indian fashion market.
ulian Dunkerton, the founder and CEO of Superdry, expressed confidence in the partnership and the opportunity it presents in the Indian market, emphasizing Superdry's existing relationship with Reliance Brands as a key factor in their success.
This collaboration is expected to leverage the strengths of both companies to drive Superdry's expansion and presence in India and neighboring territories.