(Photo : wikimedia.org)

Mukesh Ambani-led Indian retail giant Reliance Retail Ventures has entered a strategic joint venture with Mothercare plc, a global specialist in products for parents and young children.

The deal with a cash consideration of £16 million will be executed through Reliance Retail's wholly owned subsidiary Reliance Brands Holding UK Limited (RBL UK) in a move that will see both companies deepen their collaboration in the South Asian market.

RBL UK will hold a 51% stake in the newly formed joint venture, while Mothercare Global Brand Limited will keep the remaining 49%, and the new entity will own the intellectual property rights for the Mothercare brand in India, Nepal, Sri Lanka, Bhutan, and Bangladesh.

"Mothercare has been a trusted name for parents in India for years, and this partnership marks an exciting new chapter in our collaboration. We are thrilled about the opportunities it brings as we continue to expand the brand's presence across South Asia," Darshan Mehta, Managing Director of Reliance Brands Limited said in a news statement.

This new collaboration is expected to further strengthen the presence of the Mothercare brand across South Asia, where it has already made significant inroads. Reliance Brands first acquired the rights to Mothercare for the Indian market in 2018. The company currently runs 87 stores across 25 cities in addition to its e-commerce platforms. 

With Reliance's expansive retail footprint and Mothercare's deep expertise in the parenting segment, this joint venture aims to offer a wider range of products for parents and young children across the region, the companies said in a statement. 

The new partnership comes at a time the demand for high quality children's and maternity products are rising globally and in southeast Asia in particular. According to a GVC market research global baby products market size was estimated at USD 320.65 billion in 2023 and is expected to grow at a compound annual growth rate of 5.9% from 2024 to 2030. While a cognitive market research, projects the Southeast Asia Baby Care and Mother Care Products market to grow at a CAGR of 9.6% during the same period, with a market size of USD 674.70 million in 2024.