MOTHERCARE has accelerated its expansion in India, as the maternity and babywear retailer races to meet demand from a burgeoning middle class.

The retailer has plans to open up to 100 stores in India in the next five years, up from initial plans for 40 outlets, according to its franchise partner.

B.S. Nagesh, chief executive of Shopper’s Stop, said that Mothercare stores in India should break even within the first year. The franchisee has opened ten outlets in the country, with demand being driven by an appetite for consumer goods and the disposable income of the swelling ranks of the middle class.

A spokesman for Mothercare said: “If the opening programme goes well, both parties have an aspiration to open more stores. However, that 100-store target is an aspirational figure.”

The spokesman added that Ben Gordon, chief executive, was on a two-week tour of India, visiting the stores and examining opportunities.

It comes as Mothercare seeks to offset difficult trading in the UK with an international expansion strategy, repositioning itself as a global brand. The retailer, which recently opened its 300th overseas shop, is aiming to open a further 50 international outlets in the next few months, on top of the 34 stores that it has already opened abroad this year.

Mothercare stores have opened in markets including Russia, where it is sticking to a franchise formula that combines lower financial risk with more limited rewards.

In its first half of the year, Mothercare’s like-for-like sales from its international operations jumped 28 per cent, while underlying sales in the UK were up 1.9 per cent.

The market for babywear in India, which is dominated by small, independent and unbranded retailers, is estimated to be worth 15 billion rupees (£175 million) and is tipped to grow at a rate of 13 per cent a year.

Mothercare is also said to be eyeing Indonesia as a significant source of future revenue.

The shares closed up ½p at 437½p.

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