UK-based clothing brand Superdry has entered into an intellectual property (IP) joint venture agreement with Reliance Brands Holding UK, a subsidiary of Mukesh Ambani’s Reliance Retail Ventures. This partnership involves the sale of Superdry’s IP assets, including the Superdry brand and related trademarks, in South Asian countries such as India, Sri Lanka, and Bangladesh. Under this agreement, Reliance Brands and Superdry will hold 76% and 24% ownership stakes in the joint venture, respectively.
Reliance Brands Holding UK (RBUK) has been Superdry’s franchise partner in India since 2012. With this joint venture, Reliance Brands will continue to oversee the brand’s operations in India, Sri Lanka, and Bangladesh.
The total consideration for the sale of the South Asian IP amounts to £40.0 million or approximately $48.27 million. Superdry anticipates receiving gross cash proceeds of £30.4 million or about $36.64 million from this transaction.
Since partnering with RBL in 2012, Superdry has experienced significant growth in India. The brand sees great potential in the Indian market, driven by the country’s growing economy, an expanding population of affluent consumers, and increasing apparel consumption rates. Superdry believes that Reliance Brands, with its majority IP ownership stake, is best positioned to maximize this opportunity.
As part of the agreement, Superdry will transfer its IP assets in the specified territories to the newly formed joint venture entity and will invest £9.6 million or $10.8 million in the entity. Reliance will continue to be a recipient of finished goods supplied by Superdry, with transactions conducted on standardized commercial terms.
It’s worth noting that the transaction is subject to the approval of shareholders and lenders and has received approval from the Superdry board. Once all conditions are met, which is expected within three months from the date of the agreement, the transaction will be completed within 10 days.
Reliance Brands, the premium retail division of Reliance Retail Ventures Limited (RRVL), boasts a vast retail network with over 18,000 stores across India, offering more than 50 different luxury fashion brands. The company has a presence in 7,000 towns across the country.
