Last checked at 16 Oct 2009 11:30
16 October, 2009
MOTHERCARE PLC ACCELERATES ITS EXPANSION PLANS IN INDIA
Mothercare announces new joint venture with DLF Brands Ltd
Shopper's Stop franchise for shop-in-shops in department stores continues
Mothercare plc, the global parenting company, has today announced that its subsidiary, Mothercare UK Limited, has entered into a new joint venture in India with DLF Brands Ltd ('DLF'). DLF are the largest real estate company in India. The new joint venture will complement Mothercare's existing successful arrangements with Shopper's Stop Limited, 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% of the new joint venture company and DLF will own the remaining 70%. Mothercare will also have an option to increase its shareholding in the joint venture company to 51% in the future. The agreement is conditional upon Indian Foreign Investment Promotion Board approval.
The joint venture will roll out standalone Mothercare stores in DLF's shopping malls and other similar locations across the country. Shopper's Stop Limited will continue to roll out 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 Ltd welcomed the alliance with Mothercare and 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 & 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 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."
CONTACTS: Mothercare plc
Shopper’s 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. Shopper’s Stop Ltd along with its associate companies operates more than 2.3 million sq ft of retail space in the country.