UK fashion retailer Superdry on Wednesday said it will sell its intellectual property assets in South Asia to Reliance Retail for GBP 40 million (Rs 402 crore) through a joint venture (JV).

Superdry, whose fashion line mostly includes sweatshirts, hoodies and jackets, will own 24 per cent of the joint venture while Reliance Retail, India’s largest retailer, will have the remaining 76 per cent.

Under the agreement, Superdry’s brand IP assets in South Asia will be permanently transferred to the new JV entity.

The UK fashion retailer, Superdry, expects to receive GBP 30.4 million in cash proceeds. It is owned by Reliance Retail Ventures Limited (RRVL) through its subsidiary, Reliance Brands (RBL).

RBL is Superdry’s exclusive franchise partner in India since 2012. Reliance will continue to manage Superdry operations in India, Bangladesh and Sri Lanka. Superdry has rapidly grown in India since partnering with RBL in 2012.

In the last financial year, the South Asian operations accounted for approximately 1.8 per cent of total group sales, generating GBP 11 million in revenue and GBP 2.6 million in profit before tax.

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