Superdry plc said that it has signed an IP joint venture agreement with Reliance Brands Holding UK (RBUK), and agreements for the sale of Superdry's intellectual property assets, including the SUPERDRY brand and related trademarks in India, Sri Lanka, and Bangladesh to the joint venture vehicle.
RBUK and Superdry will own 76% and 24% of the joint venture vehicle respectively.
RBUK is held by Reliance Retail Ventures (RRVL) through its subsidiary Reliance Brands (RBL), Superdry's exclusive franchise partner in India since 2012.
RBL is the premium retail arm of RRVL. RRVL, operates over 18,000 stores across India over 50 different luxury fashion brands with a presence in 7,000 towns and a total shopping area of more than 65 million square feet.
Since partnering with RBL in 2012, the Superdry brand has expanded rapidly in India. Considering the backdrop of a growing Indian economy, a growing population of affluent shoppers, and ever-increasing apparel consumption rates, the Superdry brand in the market has attractive potential. As the leading fashion retail operator in India, RBUK is best placed, through a majority IP ownership stake, to maximise the opportunity.
The consideration for the sale of the South Asian IP is £40 million, which is estimated to result in Superdry receiving gross cash proceeds of £30.4 million (approx. £28.3 million net of fees and taxes).
Superdry believes that the partnership with Reliance will provide the best opportunities for the future growth of the Superdry brand in the said territories, allowing the company to focus on growing its brand and increasing sales in its more established territories, where it has strongest expertise.
Reliance Industries is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables (solar and hydrogen), retail and digital services.
The company reported 5.9% decrease in consolidated net profit to Rs 18,258 crore in Q1 FY24 as against Rs 19,405 crore posted in Q1 FY23. Gross revenue declined 4.7% year on year (YoY) to Rs 231,132 crore in the quarter ended 30 June 2023.
Shares of Reliance Industries were currently trading 0.71% lower, at Rs 2301.80 on the BSE.