Reliance Retail, a subsidiary of Mukesh Ambani's Reliance Industries (RIL), and British footwear brand Clarks, have ended their joint venture. Reliance Retail is led by Isha Ambani, the daughter of India's richest person, Mukesh Ambani.

What Happened: Reliance Retail and U.K.-based footwear brand Clarks have terminated their joint venture, which began two years ago, reported The Economic Times.

Sources cited differences over the partnership’s terms as the reason for the split.

Clarks has started closing its stores across India, with its outlets in Inorbit Malls and DLF Malls having been shut down already.

The brand, which had over 30 stores in cities like Mumbai, Delhi, Bengaluru, Kolkata, and Hyderabad at one point, is gradually reducing its presence in the country.

Reliance Retail has been a preferred partner for many global brands entering the Indian market, thanks to its extensive resources and local expertise. 

Clarks, however, has a longer history in India, initially partnering with Future Group in 2011. Following Future Retail’s bankruptcy, the brand transitioned to a partnership with Reliance Retail.

It remains uncertain whether Clarks will seek a new partner in India or operate through a fully-owned subsidiary. This comes at a time when several global brands are expanding their footprint in the Indian market.

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Why It Matters: The dissolution of the joint venture between Reliance Retail and Clarks comes at a crucial time for the Indian retail sector.

Recently, Reliance Retail has been making significant strides, including plans to reintroduce the Chinese fast-fashion brand Shein into India, four years after it was banned.

This move is expected to bolster Reliance’s portfolio and attract a younger demographic.

Moreover, Reliance Retail has achieved a milestone by surpassing the combined market valuation of India’s top consumer giants, such as ITC and Hindustan Unilever Ltd. (HUL).

According to a report by ICICI Securities, Reliance Retail's valuation has soared to approximately ₹9.17 lakh crore, making it a dominant player in the retail market.

In addition, Reliance Retail has been testing a one-hour delivery service in Mumbai and Navi Mumbai, marking a significant development in the quick commerce sector.

This initiative, integrated into the JioMart mobile app, aims to cut delivery times to 30-45 minutes as the operation scales up.

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