Reliance Brands to acquire majority of Superdry's IP assets in India
Oct 05, 2023
MUMBAI: Reliance Brands, through its wholly owned subsidiary in the UK (RBUK), has signed a definitive agreement to enter a joint venture (JV) with UK-based Superdry plc.
The entity will acquire Superdry's intellectual property (IP) assets for the Indian, Sri Lankan, and Bangladeshi territories. The consideration for the IP in the Indian territory amounts to £40 million (Rs 404.14 crore).
In this JV, RBUK and Superdry will own 76 per cent and 24 per cent of the entity, respectively.
Superdry plc is estimated to receive gross cash proceeds of £30.4 million (Rs 307.14 crore), approximately £28.3 million net of fees and taxes, from RBUK.
"This strategic evolution of brand ownership aims to capitalise on the increasing affluence and evolving consumption patterns of Indian shoppers," said the release from the Mukesh Ambani-led retail company.
"Coupled with Reliance Brand's appetite to invest in accelerating the Indian consumption narrative, the deal paves the way for Superdry's future expansion in the country and neighbouring territories," it added.
In India, the brand operates through 200 points-of-sale across 50 cities. E-commerce continues to drive incremental growth for the brand, extending its reach to over 2,300 cities, making Superdry India operations the largest franchisee network of the brand globally.
Darshan Mehta, managing director of Reliance Brands, expressed his excitement about the partnership, stating, "The journey has been rewarding and fun in equal parts due to working with the hugely talented Superdry team and the sense of camaraderie led by Julian. I look forward with excitement to this new era of our partnership."
Superdry UK will maintain a stake in the brand for the Indian territory and will continue to support brand development by sharing expertise in design, product development, and marketing.
This new partnership will enable deeper collaboration between Reliance Brands and Superdry plc, facilitating new sourcing channels, introducing India-centric product categories, optimising costs, and making long-term investments in brand development.
Superdry first entered the Indian market in 2012.
Julian Dunkerton, founder and chief executive officer of the 20-year-old clothing brand Superdry, expressed his confidence in the partnership, saying, "We are pleased to be announcing this IP agreement with our long-term partner, Reliance. India represents an incredible opportunity for Superdry, and our excellent existing relationship with Reliance means we will be able to hit the ground running. Under our new partnership, I am confident that the brand will continue to accelerate and build on our success to date to become a major force in the Indian fashion market."