Mukesh Ambani continues to expand his business empire with Reliance Industries and its subsidiaries. The conglomerate has ventured into various spaces through its new brand and joint ventures. It even collaborated with foreign companies for business growth. However, sometimes joint ventures did not work out. Now, a British-based company has cut ties with Reliance Retail which is headed by Mukesh Ambani's daughter Isha Ambani.
Reliance Retail and UK-based footwear company Clarks have terminated their two-year-old joint venture due to major differences over various terms of their ongoing partnership, IndiaRetailing reported quoting people familiar with the development. However, there is no official confirmation yet. Their joint venture Clarks Reliance Footwear Pvt Ltd operated 32 exclusive Clarks-branded brick-and-mortar stores in India in various cities including New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad and Chennai among other cities.
Clarks is likely to shut down all its India stores as the UK footwear brand’s exit strategy, the website stated quoting one source, adding that, around six mall owners confirmed the new development to it. Some said Clarks has either shut stores in their shopping centres or is in the process of shuttering the outlets. Others say the UK footwear brand may consider restructuring its India business and operate in the country as a single-brand retailer.
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Reliance Brands, the Reliance Retail unit that is the joint venture partner with Clarks, did not respond to IndiaRetailing’s request for comment on the development. In India, 100% overseas ownership is allowed in a single-brand retail business, where companies are allowed to sell multiple products, albeit under a single brand name such as Apple, Puma or Marks & Spencer.
