Is FirstCry in talks with DLF brands to buy Mothercare India rights?
India’s largest omni-channel platform for kids Firstcry is in talks with DLF brands to acquire the India market rights for UK based kids brand Mothercare, the Economic times has reported, citing anonymous sources.
Mothercare, which entered the Indian market through a partnership with DLF brands in 2009, could soon be marketed by Firstcry and boost its presence in the country’s childrenswear market.
The Indian kids market is currently estimated to be around $11.12 billion and expected to progressively grow at a 17% CAGR, according to a report by industry body ASSOCHAM.
Firstcry has already earned the tag of being Asia’s largest online store and a tie up with Mothercare would be expected to further strengthen its hold over the childrenswear market. The company has also successfully forayed into the offline segment by opening over 150 physical outlets across India and is planning to double its store count this year.
“The discussion between the two companies has been going on for some time now and has intensified in the past few weeks,” said one of the sources quoted by the newspaper. “In case the deal is finalised, DLF Brands will get a stake in FirstCry as part of the arrangement”, said another person aware of the matter.
However, commenting on the deal both Firstcry and DLF Brands have denied the same while Mothercare refused to comment on the issue. “We are not doing any deal with FirstCry.com,” said Timmy Sarna, managing director of DLF Brands in an emailed response to ET. “This is not true,” said Supam Maheshwari, founder of FirstCry.
Firstcry saw a jump in revenue which stood at Rs 239 crore but reported a loss of Rs 393 crore in the last fiscal. The mother-and-baby products specialist Mothercare has also been struggling back home in UK and other international markets as sales continue to decline amidst tough market conditions.
If a deal does go through it will help Firstcry increase its revenue and cut down on its losses while giving Mothercare a new booming market to bank on for the overall growth.
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