India (Commonwealth Union)_ Mukesh Ambani, the renowned business magnate, has secured a majority stake in a UK-based fashion brand that prominently features the popular actor Kartik Aryan, with an investment totaling Rs 400 crore. This significant development stems from Reliance Brands, a subsidiary of Reliance Retail Ventures Limited, which initiated its operations in 2007 with a clear objective to introduce and build global brands within the luxury and premium segments of the fashion and lifestyle industry.
Reliance Brands has solidified its partnership with Superdry PLC through its wholly-owned subsidiary in the UK, RBUK, by officially entering into a joint venture agreement. This strategic alliance heralds a new chapter in their collaboration. Notably, Reliance Brands Limited (RBL) has previously entered into a long-term franchise agreement with Superdry PLC in 2012, successfully introducing the brand to the Indian market.
The joint venture entity formed as a result of this agreement will assume ownership of Superdry’s intellectual property assets for the regions of India, Sri Lanka, and Bangladesh. In this venture, RBUK and Superdry will hold 76 percent and 24 percent ownership stakes, respectively. The intellectual property acquisition, valued at £40.0 million, translates to Superdry PLC receiving approximately £30.4 million in gross cash proceeds, with roughly £28.3 million net of fees and taxes.
This strategic shift in brand ownership is strategically poised to capitalize on the growing affluence and evolving consumer preferences of the Indian market. Coupled with Reliance Brand’s commitment to investing in catalyzing India’s consumption narrative, this deal lays the foundation for Superdry’s expansion in India and neighboring territories. Superdry’s unique fusion of British heritage, American aesthetics, and Japanese design elements has resonated strongly with the fashion-savvy youth in India. The brand’s presence has expanded rapidly, with 200 points of sale across 50 cities. Moreover, the brand has leveraged e-commerce effectively, extending its reach to over 2,300 cities in India, establishing RBL-run Superdry India operations as the largest franchise network of the brand worldwide.
Superdry’s product offerings encompass a diverse range of versatile outerwear, T-shirts, and shirts for both men and women. In 2019, the brand ventured into sports and activewear under the label ‘Superdry Sport,’ adding performance-driven products to its portfolio. Notably, Bollywood actor Kartik Aryan has been a prominent figure in the brand’s endeavors since 2022, serving as a brand ambassador and featuring prominently in brand campaigns and new product launches.
Darshan Mehta, the Managing Director of Reliance Brands, commented on this development, saying, “Superdry has come to define urban cool in India for more than a decade. The journey has been rewarding & fun in equal parts due to working with the hugely talented Superdry team and the sense of camaraderie led by Julian. I look forward with excitement to this new era of our partnership.” Superdry UK will maintain a stake in the brand specifically for the Indian market, continuing to offer support in areas such as design, product development, and marketing expertise.
Julian Dunkerton, the CEO and Founder of Superdry, expressed his optimism regarding this intellectual property agreement with Reliance, stating, “We are pleased to be announcing this IP agreement with our long-term partner, Reliance. India represents an incredible opportunity for Superdry, and our excellent existing relationship with Reliance means we will be able to hit the ground running. Under our new partnership, I am confident that the brand will continue to accelerate and build on our success to date to become a major force in the Indian fashion market.”
