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Swedish apparel retailer Hennes & Mauritz AB has sought permission to open 50 stores in India at an investment of 100 million Euros under the single-brand investment route.
The fast-fashion retailer has approached Department of Industrial Policy and Promotion, the nodal body for foreign direct investment (FDI), to get its sanctions to make investment into the country.
Commerce and Industry Minister Anand Sharma commenting on H&M’s application said, “After the liberalisation of FDI policy in single-brand retail, there has been a considerable interest shown by all global retail majors. The government remains committed to liberal economic reforms agenda. We view foreign investments as a source of technology, finance and means of creating gainful employment in the country”.
H&M is the second Swedish retail company after furniture company IKEA to apply to start operations in India.
India allows 100 per cent FDI in single brand retail. Foreign retailers wanting to invest need to source 30 percent of their goods locally.
H&M has around 2,800 stores in 49 countries with its largest market being Europe. In India, the brand will compete with Inditex-owned Zara, which has presence in India through a joint venture with the Tatas.
The company is understood to have sought nod to sell nine different product categories including apparels and accessories.
In February, H&M Chief Executive Karl-Johan Persson had met Anand Sharma.
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