Reliance Industries owned Reliance Brands, on Wednesday, announced that it has entered into a joint venture with UK-based clothing brand Superdry PLC, which has secured the brands' intellectual property in India, Sri Lanka and Bangladesh and driving business in the said markets.
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Reliance Brands Holding, UK, has finalized the agreement, appraising Superdry's licenses and brand assets at a total of £40 million. Consequently, Superdry PLC will be receiving gross cash proceeds of £30.4 million, which translates to approximately £28.3 million after accounting for fees and taxes, from Reliance Brands Holding, UK.
According to the company's statement, Reliance Brands Holding, UK, and Superdry will own 76% and 24% of the joint venture entity, respectively.
“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," Julian Dunkerton, Superdry’s CEO, and founder said.
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Under this partnership, Superdry UK will retain an ownership interest in the brand within the Indian market and will continue to contribute to brand growth by sharing their expertise in design, product development, and marketing.
“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," RBL said in statement on Wednesday.
RBL is a subsidiary of Reliance Retail Ventures Ltd and began operations in 2007. Its current portfolio of brand partnerships comprises Armani Exchange, Bally, Coach, Diesel, Giorgio Armani, Hamleys, Hugo Boss, Hunkemoller, Iconix, Jimmy Choo, Kate Spade, La Martina, Pottery Barn, Pret A Manger, Salvatore Ferragamo, Satya Paul, Steve Madden, Superdry, among others.
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Superdry is currently available across 200 points of sale in 50 Indian cities. Superdry’s offerings include t-shirts, and shirts for men and women, apart from shoes and accessories.