Reliance Brands to acquire majority stake in Superdry IP for Indian territory
By Retail4Growth Bureau | October 05, 2023
Reliance Brands Limited (RBL), through its wholly owned subsidiary in UK (RBUK), has signed a definitive agreement to enter a Joint Venture with UK-based Superdry PLC, by which RBUK and Superdry will own 76% and 24% of the joint venture entity, respectively.
In what is being described as a “significant new chapter” in brand partnership, Reliance Brands has announced that it has signed a definitive agreement to acquire majority ownership of Superdry IP for Indian Territory.
Reliance Brands Limited (RBL), through its wholly owned subsidiary in UK (RBUK), has signed a definitive agreement to enter a Joint Venture with UK-based Superdry PLC.
According to the company statement released on social media, 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% and 24% of the joint venture entity, respectively. The consideration for the IP is £40.0 million, which is estimated to result in Superdry PLC receiving gross cash proceeds of £30.4 million (approx. £28.3 million net of fees and taxes) from RBUK, the statement added.
”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,” said the company.
Darshan Mehta, MD of Reliance Brands Limited, was quoted as saying, “Superdry has come to define urban cool in India for more than a decade. The journey has been rewarding & 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 through sharing expertise in design, product development, and marketing, said the company.
Julian Dunkerton, Superdry’s CEO and Founder, said, “We are pleased to be announcing this IP agreement with our long-term partners, 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.”
”This announcement represents a natural progression in the brand's ongoing success and popularity in India. The new partnership will enable deeper collaboration between RBL and Superdry PLC, facilitating new sourcing channels, as well as introduction of India-centric product categories, cost optimization, and long-term investments in brand development,” added the company statement.