MUMBAI: Reliance Retail Ventures has agreed to acquire a 51% stake in Mothercare’s India operations for 16 million pounds (about Rs 175 crore). The deal follows Reliance’s previous purchase of British toy retailer Hamleys in 2019. Mothercare, a London-listed retailer specialising in baby products, will retain a 49% stake in its India unit. This unit also holds the brand rights for several South Asian countries including Nepal, Sri Lanka, Bhutan, and Bangladesh.The deal will provide Mothercare a solution to its financial difficulties.
Despite once being one of the UK’s most valuable listed retailers, the company has experienced a steady decline in market capitalisation over the past two decades, resulting in a current market capitalisation of only 20 million pounds.
In 2018, Reliance initially acquired the franchisee rights to the Mothercare brand for the India region. Currently, Reliance operates 87 Mothercare stores across 25 cities and maintains a presence on e-commerce platforms. With this new development, all activities related to Mothercare, including brand ownership, intellectual property assets and franchisee rights, will be consolidated under the India unit, which will be a 51:49 joint venture between Reliance and Mothercare.