Indian retail giant Reliance Brands has acquired majority ownership of Superdry’s intellectual property assets for the India, Sri Lanka, and Bangladesh territories via a licensing joint venture.

Reliance Brands and Superdry will own 76 per cent and 24 per cent of the joint venture, respectively. The deal, expected to bolster the London-based struggling fashion retailer’s balance sheet, is valued at £40 million (US$48.27 million). 

The Mumbai-based retailer said the strategic partnership aims to capitalise on the increasing affluence and evolving consumption patterns of Indian shoppers. Superdry entered the country in 2012 through a franchise agreement with Reliance Brands.

“Superdry has come to define urban cool in India for more than a decade,” said Darshan Mehta, MD of Reliance Brands Limited. “The journey has been rewarding & fun in equal parts due to working with the hugely talented Superdry team and the sense of camaraderie led by Julian.”

The move comes after Superdry signed an agreement with Cowell Fashion Company earlier this year to transfer its IP assets in Asia Pacific to the South Korean form for US$50 million. The assignment of Superdry’s IP assets in Asia Pacific does not include India, Bangladesh, Pakistan, Sri Lanka, Australia and New Zealand where it will retain its IP rights.

Superdry operates about 220 physical stores and 479 franchises and licenses, operating in 53 countries.