IndiaRetailBiz

Marks & Spencer (M&S), the iconic UK-based retailer of fashion, food, travel, and electronic products, which at one time was probably the most well-known international retailing brand among Indiansis close to signing a joint venture deal with Mukesh Ambani owned Reliance Retail, a part of the country’s most valued Reliance Industries Limited.

The joint venture, though not confirmed by the either parties concerned could be signed in less than a month, according to an ET report. The joint venture will be based on equal (50:50) ownership.

M&S in India, is currently operating 13 franchisee stores across 9 cities. These are operated under a franchisee arrangement with Planet Fashion owned by V. N. Sharma (NRI) of Indonesia, in Mumbai (2), Delhi (2), Gurgaon (2), Bangalore (2) and one store each at  Kolkata, Chennai, Hyderabad, Pune, and Noida.

Founded in 1884 by Michael Marks in partnership with Tom Spencer, M&S, is today operating 515 company owned stores in the UK and Hong Kong, it operates 219 franchisee stores across 34 countries in the world. While in 2007, M&S clocked a turnover of £ 7.8 billion in the U.K., its turnover from international operations was £ 610 million.

M&S is growing fast in its international operations. This can be viewed from the fact that in 2007 it added 315,000 sq ft of retail space taking the total to 1.8 million sq ft.

Reliance Retail, which launched its retail operations in November 2006, has now grown into 10 formats with over 500 stores across the country.

M&S, despite restrictions on FDI for retail in the country, is able to strike partnerships with Indian companies as most of its products are internationally sold under single brand. M&S is known as the biggest retailer in the world which derives most of its business from its own private label.

In India while, up to 51% financial stake is allowed to single brand retailers, like Nike, and Adidas, and McDonald, no financial stake is allowed to multi-brand retailers like Wal-Mart, Carrefour, and Tesco.

Naturally, M&S in India will restrict its offering to only those products that are sold under single brand only internationally.