Marks & Spencer Group, Reliance Retail announce JV in India

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Marks and Spencer Group plc (Marks & Spencer) announces an agreement to enter into a joint venture with Reliance Retail, part of the Reliance Industries Group, 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 of the Government of India, Marks & Spencer will take a 51% interest in Marks and Spencer Reliance India Pvt Ltd¹ with Reliance Retail taking the remaining 49%.

 

The value of the initial investment into the JV will be up to £29m (in cash or in kind) between the parties, with both parties agreeing to provide further funding in the future.

 

The new joint venture 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 homewares. It will aim to open at least 50 new stores in India over the next five years. It is envisaged that Planet Retail, Marks & Spencer's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing franchise stores.

 

This announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of Group revenues within the next five years.

 

Sir Stuart Rose, Chief Executive, Marks & Spencer said: "India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand. Reliance Retail is the ideal partner for us to accelerate our expansion and create the opportunity to open much bigger M&S stores. We have been very impressed by their strength in technology, logistics and property and the speed with which they have become a major player in India's retail scene."

 

Mr. Mukesh Ambani, Chairman of Reliance Industries said: "M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market. We are excited to partner with M&S to combine Reliance's understanding of the Indian marketplace, and its traditional strengths in the areas such as technology, infrastructure, logistics and training with M&S's legendary retailing and product development capabilities to deliver a delightful experience for Indian consumers."

 

The Chief Executive Officer of Marks and Spencer Reliance India Pvt Ltd will be Mr. Mark Ashman and Chief Financial Officer will be Mr. Jatin Luthra.

 

Mr. Mark Ashman CEO of Marks and Spencer Reliance India Pvt Ltd said: "There is already a strong demand for great quality, good value Marks & Spencer products in India. Partnering with Reliance Retail will enable us to accelerate our growth in this dynamic economy. We intend to open bigger stores, selling a wider range of products at lower prices, including a growing number of products sourced from local suppliers. I would like to 3 Marks and Spencer Group plc thank VP Sharma and the Planet Retail team for their early vision in bringing Marks & Spencer to India and for their ongoing support."

 

Sourced From: Reliance Industries Limited