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M&S, Reliance Retail join hands

Marks & Spencer store in Chennai

CHENNAI: Britain’s leading clothing and food retailer Marks and Spencer Group (Marks & Spencer) on Friday agreed to enter into a joint venture with Reliance Retail, part of the Reliance Industries Group, with the goal of establishing Marks & Spencer (M&S) as a major retail brand in India.

Marks & Spencer will have a 51 per cent stake in the new joint venture — Marks and Spencer Reliance India Pvt. Ltd. — and Reliance Retail the balance, subject to conditions, including Foreign Investment Promotion Board approval. The investment in the new venture will be up to £29 million (about Rs. 230 crore) between the parties, with both companies 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 in 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. “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 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,” Sir Stuart Rose, Chief Executive, Marks & Spencer, said in a statement.

Reliance Industries Chairman Mukesh Ambani said, “M&S is a 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 Mark Ashman and the Chief Financial Officer will be Jatin Luthra.

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