Rel Retail, Waterstone's planning deal?

MUMBAI: Reliance Retail's UK connection continues. After Marks and Spencers and Hamleys, Reliance Retail will soon tie up with UK-based book store chain Waterstone's.

Though both companies refused to comment, the deal, we're told, will be a lot like what Reliance struck with Marks and Spencer, Office Depot and even Hamleys. Reliance and Waterstone's will form a joint venture to set up book stores in India. Sources say Reliance wants to bring its specialty format Time Out under the new joint venture.

All of this, even as the buzz remains that Reliance is talking to Crossword for a possible strategic investment. For now, Reliance Retail will use international partnerships to grow.

It's an arrangement that works well for Waterstone's as well because sales in its 200 stores across UK and Ireland are stagnating. With specialty retail in India growing at 30%, the opportunity is immense.

Waterstone's is part of the HMV group - a well-known high street retailer in London. In India, Waterstone's will be up against Tata's Landmark, Future Group's Depot, and, of course, Raheja's Crossword.