IndiaRetailBiz

Marks & Spencer (M&S) — the iconic British retailer, which has recently costituted retail joint venture with Reliance Retail, is now looking at exiting from its franchisee arrangement with Planet Retail, which is currently operating 14 M&S stores in India. Planet Retail, which was costituted in 2001-02, is currently owned by V N Sharma an Indonesia-based NRI. Earlier, Kishore Biyani of Future group was also a partner in this venture.

Although, M&S at the time of forming joint venture with Reliance Retail had announced that it will continue its relationship with Planet Retail, the British retailer now wants to take over the management of the existing stores under the new joint venture. M&S, which holds financial (51%) and operational control in the Reliance JV, is planning to invest about (Rs 230 crore) over a period of the next five years.

M&S, according to agency reports, has begun discussion on modalities of managing the existing stores with Planet Retail.

“The JV is looking at taking over the existing franchisee stores that we have with Planet Retail. While this will be a staggered approach, and in due course of time the franchisee agreement with Planet Retail will come to an end,” said Mark Ashman, Chief Executive Officer, Marks and Spencer Reliance India Private Ltd.

M&S is betting big on its India operations as it considers the it to become a major driver of growth outside its home market. It is looking at rolling out 50 large format stores in major cities of India. These stores will be three to four times bigger than existing stores in India.