FIPB waves green signal to H&M's Rs 720-cr FDI proposal

The Foreign Investment Promotion Board (FIPB) on

Wednesday approved Swedish clothing major Hennes & Mauritz AB (H&M)’s Rs 720 crores proposal to open 50 stores across the country. As reported earlier, the Department of Industrial Policy and Promotion (DIPP) had given a green signal to the company in September this year. In April, the company had presented an application to enter the country’s single brand retail market.

After getting a clarification over whether the company would adhere to the 30 percent mandatory sourcing norm under FDI policy in single-brand retail and queries over brand’s licensing policies, DIPP went ahead with the approval process.

Endorsed by the likes of super-model Gisele Bundchen and footballer David Beckham in international ad campaigns, H&M plans to invest 100 million euros (over Rs 800 crores) in the first phase through its wholly-owned subsidiary. This is second such proposal from Sweden and also the second largest. Earlier this year the Cabinet Committee on Economic Affairs had cleared Swedish furniture-maker Ikea’s Rs 10,500 crores proposal.