Indiantelevision.com Team

(19 April 2008 2:00 pm)

BANGALORE: Marks & Spencer Group plc (M&S) is entering into a joint venture with Reliance Retail, part of the Reliance Industries group, to tap into the rapidly growing retail market in India.

M&S will take a 51 per cent interest in the joint venture company, Marks & Spencer Reliance India Pvt Ltd (MSRPL). Reliance Retail will hold the remaining 49 per cent.

The deal is subject to regulatory approvals.

The value of the initial investment into the JV will be up to £29m (in cash or in kind) between the parties, with both parties agreeing to provide further funding in the future.

The new joint venture will have the right to operate M&S stores in India selling items such as women's, men's and children's clothing as well as home ware.

The JV will aim to open at least 50 new stores in India over the next five years. It is envisaged that Planet Retail, M&S's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing franchise stores.

This announcement is part of M&S's plans to grow its international business to 15-20 per cent of group revenues within the next five years.

Said M&S chief executive Stuart Rose, "India is a very exciting opportunity for M&S 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 very 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."

Added Reliance Industries chairman Mukesh Ambani:"M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market."

MSRPL's CEO will be Mark Ashman.

Said Ashman, "There is already a strong demand for great quality, good value M&S products in India. Partnering with Reliance Retail will enable us to accelerate our growth in this dynamic economy. We intend to open bigger stores, selling a wider range of products at lower prices, including a growing number of products sourced from local suppliers."