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Reliance Brands expands partnership with Superdry PLC, acquiring majority ownership of IP for Indian territory

Oct 4, 2023

By: BlinkX Research Team

Reliance Brands Limited (RBL), a subsidiary of Reliance Industries, has signed a definitive agreement to further strengthen its partnership with UK-based Superdry PLC by entering into a joint venture. The deal involves the acquisition of Superdry's intellectual property (IP) assets for India, Sri Lanka, and Bangladesh territories. 

The joint venture entity will be established through RBL's wholly-owned UK subsidiary, RBUK. The ownership in the joint venture will be divided, with RBUK holding 76% and Superdry PLC holding 24%.The transaction's consideration for the IP is £40.0 million, expected to result in Superdry PLC receiving approximately £30.4 million in gross cash proceeds (approximately £28.3 million net of fees and taxes) from RBUK.

Reliance Brands and Superdry PLC have enjoyed a successful partnership since 2012 when RBL signed a long-term franchise agreement with Superdry PLC and introduced the brand to the Indian market. This new strategic step in brand ownership aims to leverage the changing consumption patterns and increasing affluence among Indian shoppers. It also aligns with Reliance Brands' commitment to invest in driving India's consumption growth.

Superdry's brand has rapidly expanded to 200 points of sale across 50 cities and has a robust e-commerce presence, reaching beyond 2,300 Indian cities. This positions RBL-run Superdry India operations as the largest franchisee network for the brand globally.

The IP agreement represents a significant opportunity for Superdry to expand its presence in India. Superdry UK will maintain a stake in the brand for the Indian territory and continue to contribute through expertise in design, product development, and marketing. The partnership is expected to enhance collaboration, sourcing, cost optimization, and India-specific product categories.

Reliance Brands Limited and Superdry PLC expressed their enthusiasm for this new chapter in their partnership, aiming to further solidify Superdry's position in the Indian fashion market.

Julian Dunkerton, Superdry's CEO and Founder, noted, “India represents an incredible opportunity for Superdry, and our excellent existing relationship with Reliance means we will be able to hit the ground running.”