Canali eyes JV, to pump in Rs 7.65 cr

Italian luxury fashion brand Canali is looking at forming a

joint venture with an Indian partner and would invest Rs 7.65 crore in India with 51 per cent ownership. The Foreign Investment and Promotion Board cleared Canali Holding’s proposal last week, to set up the JV with 51 per cent foreign equity participation for single-brand retailing. Canali has been selling products in India in partnership with Genesis Luxury Fashion since 2007 through a marketing and distribution agreement. Genesis operates five Canali stores in the country and both are now working on setting up a joint venture. Many other global luxury labels are still in the process of studying the blue print of FDI regulation before making any announcement on their India plans.

Canali made this move after the Indian government approved 100 per cent FDI in single brand retail. But since the 30 per cent sourcing from SMEs clause is acting as a hindrance to global giants’ entry, these labels, though keen to enter the lucrative Indian market, prefer to go with a domestic partner instead of going solo. Genesis also retails a host of other international luxury labels including Paul Smith, Bottega Veneta, Jimmy Choo, Etro and Tumi. It also has a joint venture with Burberry of UK.