Marks & Spencer has ended weeks of speculation over its plans to enter India with an announcement that it has sealed a joint venture agreement with local retailer Reliance Retail.
The two sides had been locked in talks but the UK retailer today (18 April) unveiled a deal it hopes will establish M&S as a “major retail brand in India”.
The new venture – Marks & Spencer Reliance India Pvt Ltd – plans to open 50 stores in Indian cities under the Marks & Spencer banner in the next five years.
The product line-up will include M&S clothing and homeware, but the company told just-food that it currently has no plans to sell food in India.
“We are not selling food,” a M&S spokesperson said. “We will be selling clothing and homeware, including signature M&S brands like the Per Una, Autograph and Limited collections.”
Marks & Spencer will take a 51% stake in the newly-formed company. Reliance Retail will hold the remaining 49%.
The two sides will initially invest GBP29m (US$57.9m) into the business and said they would provide more funding as it becomes necessary.
The deal is subject to certain conditions, including approval from the Indian government.