Asos said to be in talks with Reliance as it eyes expansion in India

Sources have said that talks between the two parties have “been on for a while”, despite an agreement not having yet been reached, as first reported by India Retailing.

Reliance Retail, a subsidiary of Reliance Industries, is expected to sell Asos products online at fashion retailer Ajio, as well as offline through its department store chain Centro, according to one source.

Another source added that Reliance could open Asos standalone stores in India if the deal goes ahead.

They added: “Reliance will definitely sell Asos products on Ajio and in stores, but may or may not have a dedicated Asos India e-commerce site.”

While Asos has been sourcing out of India for many years, the partnership with Reliance is anticipated to boost its sourcing in future.

A spokesperson for Reliance Retail reportedly said: “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.

“We have made and will continue to make necessary disclosures in compliance with our obligations under the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges.”

Asos did not provide a comment.

Background checks 

Reliance already has a string of fashion and luxury ventures and franchise agreements, including selling the likes of Armani, Burberry, Marks & Spencer, Steven Madden, Gap and Mothercare.

The retail group made its first move into the food industry in 2022 after striking a deal with Pret A Manger.

The talks news comes after a turbulent time for Asos, which posted a loss before tax of £296.7m for the 52 weeks to September 3, 2023.

Asos has also shuffled its top team with the appointment of Anthony Ben Sadoun as executive vice-president of digital product, as well as the departure of interim chief people officer Caroline Ross, brands director James Barron and menswear product director Stefan Pesticcio