Reliance Brands acquires Mothercare India rights
Reliance Industries Limited-owned fashion retail entity Reliance Brands has acquired the rights for UK-based kids products company Mothercare for the Indian market, the Economic Times reported citing three anonymous sources.
Mothercare had previously entered the Indian market through a partnership with DLF brands in 2009. Interestingly, India’s largest omni-channel platform for kids Firstcry was also in talks with DLF brands to acquire the India market rights. However, a higher offer by Reliance, which has deep pockets, seemed to have sealed the deal.
“FirstCry.com was in advanced stages of talks with DLF Brands before Reliance emerged and snapped up the rights," said one source.
Emails sent to DLF Brands and Reliance Brands seeking details of the deal remained unanswered. Mothercare declined to comment.
“The deal will give the unit of Reliance Industries control over all Mothercare outlets currently run by DLF Brands," said another source.
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.
The baby care segment is also booming in the country, which is one of the main reasons why Reliance, the rights owner of several international labels, has bought the rights for a higher amount.
Reliance Brands sells international labels such as Diesel, Hamleys, Bally Kenneth Cole, Thomas Pink, Brooks Brothers, Super Dry and Steve Madden in India, while Mothercare UK-based retailer sells products for children and expectant mothers.
Reliance Brands had earlier bought out L Catterton Asia’s 40% stake in Genesis Luxury, which gave the company rights over luxury brands like Burberry, Canali, Paul Smith, Armani, Just Cavalli, and Jimmy Choo, among others.
Copyright © 2021 FashionNetwork.com All rights reserved.