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16 Oct 2009 11:30
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16Β October, 2009Β
MOTHERCARE PLC ACCELERATES ITS EXPANSION PLANS INΒ INDIAΒ
Mothercare announcesΒ newΒ joint venture with DLF Brands LtdΒ
Shopper's Stop franchise forΒ shop-in-shopsΒ in department stores continues
Mothercare plc, the global parenting company, has today announcedΒ that its subsidiary, Mothercare UK Limited, has entered into aΒ newΒ joint ventureΒ inΒ IndiaΒ with DLF Brands LtdΒ ('DLF').Β DLF areΒ theΒ largest real estate company inΒ India.Β The new joint ventureΒ will complement Mothercare's existing successful arrangements with Shopper's Stop Limited, a leading departmental store retailer,Β and accelerate further the Mothercare store expansion plans in the region.Β
MothercareΒ currently hasΒ 23Β franchise stores inΒ IndiaΒ for its Mothercare brandΒ andΒ is now targetingΒ a total ofΒ 200 stores, double its original target of 100 stores.Β
Mothercare will own 30% of the newΒ joint ventureΒ company and DLF willΒ ownΒ the remaining 70%. Mothercare will also have anΒ option to increase its shareholdingΒ in the joint venture companyΒ to 51%Β in the future.Β The agreement is conditionalΒ upon Indian Foreign Investment Promotion Board approval.
The joint venture will roll out standalone Mothercare stores in DLF'sΒ shoppingΒ malls and other similar locations across the country. Shopper's Stop Limited will continue to roll out shop-in-shopsΒ in department storesΒ .Β
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 inΒ IndiaΒ for the Mothercare brand. Over the past three years, we have openedΒ 23Β successfulΒ MothercareΒ stores with Shopper's Stop which have been well received by our customers.Β We look forward to working withΒ DLFΒ andΒ Shopper's Stop to accelerate our expansionΒ and develop a stronger presence inΒ the Indian market."
Β Mr. Timmy Sarna, CEO, DLF Brands Ltd welcomed the alliance with Mothercare and said, "We are delighted to have entered into aΒ joint venture withΒ Mothercare,Β the world'sΒ leading parenting company.Β By combining our strengths we are confident of becoming leaders in this business segment."Β
Govind Shrikhande, Customer Care Associate &Β President &Β CEO, Shopper's Stop Limited, said, "Shopper's Stop Limited will continue its successful arrangement with Mothercare PLC to open and operate shop-in-shops of Mothercare inΒ 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."
CONTACTS: Mothercare plc
Shopperβs Stop Ltd., a pioneer in modern retailing in India, has been promoted by K Raheja Corp. Group (Chandru L. Raheja Group), one of the leading groups in the business of real estate development and hotels in the country. Shopperβs Stop Ltd along with its associate companies operates more than 2.3 million sq ft of retail space in the country.
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