Global retail player Mothercare has entered into a joint venture with realty major DLF’s retail management firm, DLF Brands, to open standalone stores of the U.K.-based company in the country.
While Mothercare will hold 30 per cent stake in the joint venture, DLF Brands will have control over the remaining 70 per cent.
This will be Mothercare’s first venture into exclusive retail chain business in the country.
“The joint venture will roll out standalone stores in DLF’s shopping malls and other similar locations across the country,” Mothercare said in a statement on Friday.
The company, which operates 23 shop-in-shop in the country under a separate franchise agreement with the Raheja Group-promoted Shopper’s Stop, said the joint venture would accelerate its expansion in India.
“We are excited to announce that we have partnered with DLF to further develop our standalone stores presence in India for the Mothercare brand. We are looking forward to working with DLF and Shopper’s Stop to accelerate our expansion and develop a stronger presence,” Mothercare Chief Executive Ben Gordon said.
Mr. Gordon said Mothercare would have an option to increase its shareholding in the joint venture to 51 per cent in future. Mothercare hopes to extend its retail chain to 200 stores but did not give details regarding the company’s investment plan or duration of the roll-out.
Timmy Sarna, CEO, DLF Brands, welcomed the alliance with Mothercare and said “By combining our strengths we are confident of becoming leaders in this business segment.”
The company retails children’s and parenting products and operates in 51 countries with 1,060 stores across the globe.