Mothercare has entered into a new joint venture in India with DLF Brands. DLF are the largest real estate company in India.
The new joint venture will complement Mothercare's existing arrangements with Shopper's Stop, a leading departmental store retailer, and accelerate further the Mothercare store expansion plans in the region.
Mothercare currently has 23 franchise stores in India for its Mothercare brand and is now targeting a total of 200 stores, double its original target of 100 stores.
Mothercare will own 30 per cent of the new joint venture company and DLF will own the remaining 70 per cent. Mothercare will also have an option to increase its shareholding in the joint venture company to 51 per cent in the future.
The joint venture will roll out standalone Mothercare stores in DLF's shopping malls and other similar locations across the country. Shopper's Stop will continue to open shop-in-shops in department stores.
Ben Gordon, Mothercare chief executive said: "We are very excited to announce today that we have partnered with DLF to further develop our standalone store presence in India for the Mothercare brand.
"Over the past three years, we have opened 23 successful Mothercare stores with Shopper's Stop which have been well received by our customers. We look forward to working with DLF and Shopper's Stop to accelerate our expansion and develop a stronger presence in the Indian market."
Mr. Timmy Sarna, CEO, DLF Brands said, "We are delighted to have entered into a joint venture with Mothercare, the world's leading parenting company. By combining our strengths we are confident of becoming leaders in this business segment."
Govind Shrikhande, Customer Care Associate, president and CEO, Shopper's Stop added: "Shopper's Stop Limited will continue its successful arrangement with Mothercare PLC to open and operate shop-in-shops of Mothercare in India.
"The joint venture's focus on standalone stores is highly complementary to our shops-in-shops, and shall power the brand to dominance in its segment."