Marks & Spencer Group plc inked a JV with Reliance Retail

Marks & Spencer Group plc, UK`s leading retailers, offering high quality, great value clothing, as well as home products and outstanding quality food, inked a JV with Mukesh Ambani`s Reliance Retail. Upon the approval from Foreign Investment Promotion Board, Marks & Spencer will have 51% stake in the newly formed company Marks & Spencer Reliance India Pvt. Ltd. with 49% for Reliance Retail. The value of the initial investment into the JV will be up to £29m (in cash or in kind) between the parties, with plan for further funding on mutual consent. The new joint venture will have the right to operate Marks & Spencer stores in India selling items such as women`s, men`s and children`s clothing as well as homewares. It will aim to open at least 50 new stores in India over the next five years. It is envisaged that Planet Retail, Marks & Spencer`s existing franchise partner in India, will continue as a franchisee in respect of the 14 existing franchise stores. This deal is part of Mark & Spencer`s plan of ramping up its revenue by 15-20 per cent.