Mothercare to grow in India

Mothercare, which set up shop in India three years back, will open exclusive retail stores in the country

under its joint venture with DLF Brands. Mothercare will hold a 30 per cent share in the venture, with DLF Brands controlling the balance 70 per cent stake. The UK brand also operates under a separate franchise agreement with Shoppers Stop. The plan is to open 100 standalone stores (under the joint venture route) over the next five years which may involve an investment of around Rs 200 crores. At present there are two standalone stores, and there are 25 shop-in-shop stores within Shoppers Stop outlets.

There will be a cumulative 30 to 40 shop-in-shops over the next three years. Around 40 per cent of Mothercare’s apparel requirements are sourced from India. The sourcing which started a decade back is expected to be stepped up to over 50 per cent going forward. It offers a value-proposition to the country’s middle class. Mothercare sees a huge potential for growth with some 24 million babies being born in India every year and an estimated market size is $3 billion. Mothercare which offers apparel, toys and equipment for infants and children is worth $1.5 billion and operates in 50 countries through 1,100 stores worldwide.