Mumbai (Maharashtra) [India], October 4 (ANI): Reliance Brands through its wholly owned subsidiary in UK (RBUK), has on Wednesday signed a definitive agreement to enter a joint venture with UK-based Superdry PLC, marking a significant new chapter in its partnership with Superdry PLC.
Reliance Brands Limited (RBL) is a subsidiary of Reliance Retail Ventures Limited and began operations in 2007 with a mandate to launch and build global brands in luxury to premium segments across fashion and lifestyle.
Reliance Brands in a release said the joint venture entity will acquire Superdry's intellectual property assets for the India, Sri Lanka, and Bangladesh territories. RBUK and Superdry will own 76 per cent and 24 per cent of the joint venture entity, respectively.
"The consideration for the IP isPound 40.0 million, which is estimated to result in Superdry PLC receiving gross cash proceeds ofPound 30.4 million (approx.
Pound 28.3 million net of fees and taxes) from RBUK," the release stated.
RBL had inked a long-term franchise agreement with Superdry PLC in 2012 and introduced the brand in India. This strategic evolution of brand ownership aims to capitalise on the increasing affluence and evolving consumption patterns of Indian shoppers.
Coupled with Reliance Brand's appetite to invest in accelerating Indian consumption narrative, the deal paves way for Superdry's future expansion in the country and neighbouring territories.
Superdry's fusion of British heritage, American styling, and Japanese graphics has carved a niche among fashionable young Indian consumers. The brand has expanded rapidly to 200 points of sale across 50 cities. E-commerce continues to drive incremental growth for the brand, boosting its reach beyond 2,300 Indian cities, underlining RBL-run Superdry India operations as the largest franchisee network of the brand globally.
Superdry's offerings include versatile outerwear, T-shirts, and shirts for men and women. In 2019, Superdry expanded into sports and activewear under 'Superdry Sport', adding performance-driven products to its portfolio.
"Superdry has come to define urban cool in India for more than a decade. The journey has been rewardingfun 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," said Darshan Mehta, MD of Reliance Brands.
Superdry UK will maintain a stake in the brand for the Indian territory and will continue to support brand development through sharing expertise in design, product development, and marketing.
Julian Dunkerton, Superdry's CEO and Founder, expressed: "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." (ANI)