Reliance Retail Ventures is set to bolster its partnership with UK-based Superdry by acquiring the brand and related trademarks for South Asian markets, including India, Sri Lanka, and Bangladesh, for £40 million. This strategic move solidifies the long-standing relationship between the two companies, which began in 2012 when Reliance gained the franchise rights for Superdry in India.
The deal will see the transfer of the Superdry brand, its associated trademarks, and other intellectual property assets to a separate entity. Reliance Retail’s indirect subsidiary, Reliance Brands Holding UK, will hold a significant 76% stake in this entity, while Superdry Plc will retain a 24% ownership share.
Reliance Retail’s connection with Superdry dates back to 2012, when it secured the India franchise rights for the renowned UK-based clothing brand. This acquisition marks a significant step forward in their partnership and underscores Reliance Retail’s commitment to expanding its presence in the fashion and apparel sector.
Superdry has announced its intention to invest approximately £10 million in the newly established entity. This investment will be offset against the £40 million consideration it receives from Reliance Retail. This strategic move not only strengthens Superdry’s presence in the South Asian market but also positions Reliance Retail as a key player in the region’s fashion retail industry.
Superdry’s intellectual property assets covering the three South Asian territories have played a pivotal role in its overall business. In the financial year ending April 30, these assets contributed approximately 1.8% of Superdry’s total sales, generating revenue of about £11 million and an operating profit of approximately £2.6 million.
The acquisition of Superdry’s South Asian licenses represents a significant milestone for Reliance Retail Ventures. It aligns with the company’s broader strategy of expanding its portfolio and enhancing its presence in key sectors, including fashion and apparel. As Reliance Retail continues to strengthen its position in the South Asian market, this acquisition reaffirms its commitment to delivering high-quality, globally recognized brands to consumers across the region.
