Reliance Brands Holding UK (RBUK), a wholly owned subsidiary of Reliance Brands Limited (RBL), has entered into an agreement with UK-based clothing company Superdry to create a joint venture (JV).

RBUK, which is held by India’s Reliance Retail Ventures Limited (RRVL) through RBL, will hold a controlling stake of 76% in the JV. Meanwhile, Superdry will invest £9.6m ($11.62m) and hold the remaining 24% stake.

As per the agreement, the JV will buy Superdry’s intellectual property (IP) assets in India, Sri Lanka and Bangladesh for a total consideration of £40m.

The assets include the SUPERDRY brand and related trademarks.

The agreement also provides Superdry with a “perpetual, irrevocable and sub-licensable licence” to continue manufacturing goods in South Asia.

The clothing brand will supply finished goods to Reliance, which will be sold at standardised commercial terms.

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Reliance Brands Limited MD Darshan Mehta said: “Superdry has come to define urban cool in India for more than a decade. 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. I look forward with excitement to this new era of our partnership.”

Following the deal, Superdry UK will retain a stake in the brand for the Indian territory and support the brand’s growth.

The two sides partnered in 2012 and introduced the Superdry brand in India.

The brand offers outerwear, T-shirts and shirts for men and women, as well as sports and activewear under Superdry Sport.

Superdry CEO and founder Julian Dunkerton said: “India represents an incredible opportunity for Superdry and our excellent existing relationship with Reliance means we will be able to hit the ground running. Under our new partnership, I am confident that the brand will continue to accelerate and build on our success to date to become a major force in the Indian fashion market.”

The transaction is approved by the Superdry board but is subject to approval from Superdry’s shareholders and lenders.

Last month, RRVL, the retail arm of Reliance Industries, held talks with existing investors for new investments of $1.5bn.