Superdry to sell South Asian business to Reliance Retail for around ₹4 billion

British fashion retailer Superdry has inked a joint venture pact with Reliance Brands Holding, UK, for the transfer of Superdry's intellectual property assets, including the SUPERDRY brand and associated trademarks in India, Sri Lanka, and Bangladesh to the newly-formed joint venture entity.

Reliance Brands Holding UK, is a subsidiary of Reliance Retail Ventures.

In this arrangement, Reliance Brands UK (RBUK) will hold a majority stake of 76%, while Superdry will retain a 24% interest in the joint venture, which will now exclusively manage the South Asian IP rights for the Superdry brand. This announcement was made through a disclosure on the London Stock Exchange.

The sale of the South Asian IP comes with a consideration of £40.0 million, resulting in Superdry receiving gross cash proceeds of £30.4 million after accounting for fees and taxes. Additionally, Superdry will contribute £9.6 million to the joint venture entity, which will offset a portion of the £40.0 million consideration receivable by Superdry.

RBUK, a subsidiary of Reliance Retail Ventures, is held through its subsidiary Reliance Brands Limited (RBL), which has served as Superdry's exclusive franchise partner in India since 2012.

Superdry also noted in the disclosure that its brand has experienced significant growth in India since its partnership with Reliance Brands in 2012.