Mothercare Strengthens Presence in South Asia Through Joint Venture with Reliance Brands

Mothercare has expanded its presence in the South Asian region by forming a joint venture with British Reliance Brands Holding and has also refinanced its existing debts with Gordon Brothers. Reliance Brands, a subsidiary of Reliance Industries, has acquired 51% of the joint venture, which manages Mothercare's brand rights in India, Nepal, Sri Lanka, Bhutan, and Bangladesh. The transaction amounts to 16 million pounds, with Mothercare retaining the remaining 49% of the shares. Last month, Reliance entered into a partnership with the Israeli lingerie manufacturer Delta Galil to expand its business in the Indian apparel market, aiming to double its retail business in the next three to four years. Mothercare has also announced that it has secured new loans of 8 million pounds, allowing the London-listed company to reduce its debt burden. "The reduction in the required loan size, financed through the joint venture, and the significantly lower interest costs as a result, considerably enhance our flexibility for the fiscal year 2025 and beyond," said Clive Whiley, Chairman of Mothercare.