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Marks & Spencer forms joint venture with Reliance Retail
UK retailer Marks and Spencer Group and Reliance Retail, part of the $27.13-billion Reliance Industries Group, have announced a joint venture in India.
UK retailer Marks and Spencer Group and Reliance Retail, part of the $27.13-billion Reliance Industries Group, have announced a joint venture in India.
The value of the initial investment in the venture will be up to Ł29 million (in cash or in kind) or Rs 230 crore between the parties, with both agreeing to provide further funding in the future.
The new joint venture signals the major foray into India of the UK retailer. It will have the right to operate Marks & Spencer stores in India selling items such as women's, men's and children's clothing as well as home wares. It will aim at opening at least 50 new stores in India over the next five years.
According to a press release, the UK retail major has entered into an agreement with Reliance Retail (which currently has over 500 stores in over 49 cities spanning over 3.5 million sq ft.) with the goal of establishing Marks & Spencer as a major retail brand in India.
Subject to the satisfaction or waiver of certain conditions, including the receipt of approval from the Foreign Investment Promotion Board, Marks & Spencer will take a 51 per cent interest in Marks and Spencer Reliance India Pvt Ltd with Reliance Retail taking the remaining 49 per cent.
