FIPB okays Tommy Hilfiger's e-tail biz, own stores request

The Foreign Investment Promotion Board (FIPB) has approved the request of American fashion apparel major Tommy Hilfiger to run its own stores and conduct e-commerce business in India. The approval, granted recently, came nearly four years after its Indian arm Tommy Hilfiger Arvind Fashion first moved the application, it is understood.

It is already known that NYSE-listed PVH Corp and textile tycoon Sanjay Lalbhai-led Arvind equally own Tommy Hilfiger's Indian operations. Now, when the clause of an Indian partner with 50 percent stake has been eased by the government, Tommy Hilfiger would individually run its e-commerce site in the country.

It may be recalld that in March, the government had announced a new set of guidelines that allowed 100 percent FDI in e-commerce 'marketplace' - defined as a digital platform that acts as a facilitator between buyer and seller. But FDI in e-commerce companies that own inventories of goods and services and sell directly to consumers is prohibited.

Nearly 12 years ago, Tommy Hilfiger was one of the first global fashion brands to enter the country. It has 200 points of sale including 97 exclusive shops with a retail turnover estimated at around Rs 700 crore.