The Hindu Business Line : Armani, Cartier allowed single brand retailing

New Delhi, April 8 Iconic brands Cartier and Armani are all set to enter the country, with the Government approving on Tuesday their FDI (foreign direct investment) proposals under single-brand retailing.

Richemont Services BV plans to set up a new joint venture in India with 51 per cent foreign equity under brand name ‘Cartier’. Richemont Group’s joint venture entails an FDI of Rs 20 lakh. The Group’s interests globally encompass some of the most prestigious names in the luxury industry including Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc.

Italian fashion brand Giorgio Armani’s joint venture will also be with 51 per cent foreign equity for retail trading of ‘Armani’ branded products. Sources said that Armani has entered into 51:49 joint venture with real estate company DLF for the proposed venture. The proposal entails Rs 1.02 crore as FDI, an official statement said here.

Sources said that the joint venture would undertake the sale of top Armani brands which will be retailed through DLF’s Emporio Mall, amongst others. This first-of-its-kind luxury mall – Emporio – is coming up in New Delhi, and is expected to be operational around May-June.

Fast growing market

The luxury retail market in India is estimated at $3.5 billion growing at a CAGR of 45-50 per cent. The 2007 Asia- Pacific Wealth Report, released by Merrill Lynch and Capgemini, says that India has recorded the world’s second-fastest growth in the number of high networth individuals at 20.5 per cent, making it a lucrative luxury .

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More Stories on : Foreign Direct Investment | Retailing | Policy

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