M&S one of the largest retailers of UK.
M&S had its operations in about 34 countries with 840
stores and about 219 franchisees all over the world.
In India they were operating with 14 franchise
stores, PLANET RETAIL since 2001.
With over 21 million people visiting their stores each
They employ over 75,000 people in the UK and
abroad, and have over 600 UK stores, plus an
expanding international business.
Reliance Retail is the retail business of Reliance
Many brand names under this business such as
Reliance iStore, Reliance Home Kitchens, Reliance
Time Out, Reliance Digital, Reliance Wellness,
Reliance Trends etc.
This company followed a diversification strategy since
its inception. It vertically integrated. This resulted in
formation of many subsidiaries. Reliance Retail is one
A joint venture is an entity formed between two
or more parties to undertake economic activity
together. The parties agree to create a new entity
by both contributing equity, and then they share in
the revenues, expenses, and control of the
The Govt. had permitted retailers of single brand
products to own a majority stake in a JV with a local
partner(with prior to Govt. permission). Retailers of
multi brands are permitted to operate through
franchisees and licensees.
ENTERING TO INDIA
M&S one of the largest retailers of UK, entered in India
by a joint venture with RELIANCE RETAIL LTD. (RRL).
The announcement was made on April18, 2008.
NAME- Marks & Spencer’s Reliance India Pvt. Ltd.
STAKE- 51% stake of M&S and 49% of RRL.
INVESTMENT- 29mn pounds from both sides.
OUTLOOK- THE STORES
Initially stores will be opened at
metros(DELHI, MUMBAI, KOLKATTA, CHENNAI)
with first store being opened in Mumbai in Jan 2009.
Stores will be first of its kind in India, with an area of
about 20,000 sq ft, with operations in apparels for
children, women and men, gift items, house
ware, home furnishing etc.
This JV will bring to India anew format of seamless
malls i.e. shops within shops, with separate boutiques.
STRATEGY TO BE USED
Sourcing about 70% of the product by volume to be
sold in India, sourced from the country itself. And to
increase total number of suppliers who will source to
M&S deep thoughts
This JV will help it to launch its line of food business
Moreover it can diversify it to emerging economies
like India and China.
Benefits of RRL
Help in positioning of Reliance Retail stores in a way
that it would appeal to higher strata of society.
Why they choose RRL
Strength in technology
Speed with which they have become a major player in
India’s retail sector.
Intense competition from retailers like PANTALOOM
From CORNER STORES in India.
Franchisees of various
Retail industry scene of India- It was estimated to
be about US$410 bn in 2008 and in 2018 it will be
about US$869 bn.
Developing economy- India
Benefits of this JV to India
Attachment of global leaders to Indian market
Much variety of international level for Indian