Mahindra ties up with Destination Maternity

Despite the government allowing 100 per cent foreign direct

investment in single brand retail, letting global labels set up stores on their own, Destination Maternity has chosen Mahindra Retail as its franchisee partner in India.

Mahindra Retail, the retail wing of the $14.4 billion (over Rs 78000 crores) Mahindra Group, has announced its tie up with Destination Maternity, a maternity wear brand from NASDAQ listed Destination Maternity Corporation -- the world’s largest maternity apparel retailer with a turnover of $545.5 million (Rs 2982 crores) in FY11. Mahindra Retail currently operates 77 ‘Mom & Me’ stores and has been selling the Destination Maternity through shop-in-shop since 2009. As its master franchise, it will now set up standalone stores across major metros.

“We are just scratching the surface of the maternity apparel market. There’s lot more in store for the brand” said K Venkatraman, CEO, Mahindra Retail. Edward Kell, CEO, Destination Maternity commented, “Even though we did have the opportunity of direct investment owing to regulatory approvals, we still decided to enter via a franchisee route with a partner, since it makes more sense in terms of having a partner who has the expertise, retail landscape etc”.

Mahindra Group is also expected to raise Rs 100 crores ($18.8 million) funding from private equity investors. Mom & Me caters to the baby care segment in the organised retail market. It has about 50 stores across the country, offering baby apparel & accessories, travel and safety products, baby furniture, toys, etc. It is now raising money to expand its retail footprint and to add new product offerings. The retail chain is also looking to expand to Tier II and Tier III cities via franchise model.