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Britain's clothing and food retailer Marks & Spencer will set up of a joint venture firm with Mukesh Ambani-led Reliance Retail at an investment of 29 million pounds (around Rs 230 crore) to mark its foray into India.
The British company will hold a 51 per cent stake in the JV, to be named Marks and Spencer Reliance India Pvt Ltd, while the remaining will be with Reliance Retail.
"India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand. Reliance Retail is the ideal partner for
us to accelerate our expansion and create the opportunity to open much bigger M&S stores," Marks & Spencer chief executive Stuart Rose said in a statement.
The new joint venture will have the right to operate Marks & Spencer stores in India, selling items such as homewares and clothing for women, men and children. It will aim to open at least 50 new stores in the country over the next five years.
Planet Retail, Marks & Spencer's existing franchise partner in India, will continue as a franchisee in respect of the 14 existing stores.
The announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of group revenues within the next five years.
The chief executive officer of Marks and Spencer Reliance India Pvt Ltd will be Mark Ashman, while chief financial officer will be Jatin Luthra.
"M&S is a very well respected brand globally. At Reliance, we have always strongly believed in the power of the Indian consumer market," Reliance Industries Chairman Mukesh Ambani said.
Reliance's understanding of the Indian marketplace, and its traditional strengths in areas such as technology, infrastructure, logistics and training along with M&S's legendary retailing and product development capabilities will make for a delightful experience for Indian consumers, Ambani said.