1. Purpose

India is an enormous retail market, second only in population to China. Over the past several years, India's market environment has developed as the country's middle class and upper middle class consumer segments have grown rapidly. India's market has also undergone gradual deregulation. In 2012, the Indian government passed laws allowing foreign companies to establish wholly owned entities operating single-brand retail stores. In response to these positive developments, MUJI has been making preparations to open MUJI retail outlets in India.

Joint venture partner Reliance Brands Limited is part of India's largest private sector company, the Reliance Industries Group. Reliance Brands operates apparel and other retail busineses within India. They will contribute valuable expertise and assets to us aid to smooth launch of this new joint venture.

2. Joint Venture Overview

Based on our agreement, Ryohin Keikaku is scheduled to invest a majority share in this joint venture, and we are going to propose FDI (Foreign Direct Investment) to FIPB (Forein Investment Promotion Board) as such.

3. About Reliance Brands Limited

Reliance Brands Limited is part of the Reliance Industries Group. The Company began operations in October 2007 with a mandate to launch and build international and domestic brand equity in the premium to luxury segment across apparel, footwear and lifestyle business. Its current portfolio of brand partnerships includes BCBG MAX AZRIA, BROOKS BROTHERS, DC SHOES, DIESEL, DUNE, ERMENEGILDO ZEGNA, HAMLEYS, HUNKEMÖLLER, ICONIX, JUICY COUTURE, KENNETH COLE, PAUL & SHARK, QUIKSILVER, ROXY, REISS, STEVE MADDEN, SUPERDRY AND THOMAS PINK.