UK’s Fashion Retailer Superdry Sells South Asian IP Assets To Reliance Retail In JV Worth £40 Million

The UK-based fashion retailer stated that it would own 24 per cent of the joint venture, while Mukesh Ambani’s Reliance Retail would control the remaining 76 per cent. 

Reliance Brands Limited, subsidiary of Reliance Retail Ventures Limited (RRVL), has been Superdry’s exclusive franchise partner in India since 2012.  ( Image Source :Getty )

UK’s Superdry announced on Wednesday that it will sell it’s intellectual property assets in South Asia to Reliance Retail for Rs 402 crore (£40 million) through a joint venture. The UK-based fashion retailer stated that it would own 24 per cent of the joint venture, while Mukesh Ambani’s Reliance Retail would control the remaining 76 per cent. 

As part of the agreement, Superdry’s brand IP assets in South Asia would be permanently transferred to the new entity, the company informed via an exchange filing to the London Stock Exchange. The firm further stated in the filing that Superdry plc signed an IP joint venture agreement with Reliance Brands Holding UK (RBUK) Ltd to sell it’s intellectual property assets, including the SUPERDRY brand and other related trademarks in India, Sri Lanka, and Bangladesh to the JV entity, reported PTI. The retailer added that Reliance would continue to oversee brand operations in the three countries. 

Lately, Superdry has been struggling with weak orders from wholesale partners, who expressed caution on stock levels and liquidity. The company said it expects a gross cash proceeds of £30.4 million. RBUK comes under the Reliance Retail Ventures Limited (RRVL) firm through it’s subsidiary Reliance Brands Limited. The firm has been Superdry’s exclusive franchise partner in India since 2012. 

Notably, RBL is the premium retail arm of RRVL and since joining hands with RBL in 2012, Superdry has been able to expand at a rapid pace in India. Commenting on the JV, the company added, “Considering the backdrop of a growing Indian economy, a growing population of affluent shoppers, and ever-increasing apparel consumption rates, the Superdry brand in the market has an attractive potential. As the leading fashion retail operator in India, RBUK is best placed, through a majority IP ownership stake, to maximise the opportunity.”

The UK-based retailer’s South Asian IP generated nearly 1.8 per cent of the total group sales for the financial year to April 30, 2023, and added revenue worth £11 million and profit before tax of nearly £2.6 million.