H&M awaits FIPB nod to roll out stores

As per recent media reports, Uniqlo and Hennes and Mauritz (H&M)

had put their India entry plans on hold till the fortcoming general elections, however as per company sources, the Sweden-based fashion company is awaiting the Foreign Investment Promotion Board (FIPB) nod to go ahead with its India plans. The company’s proposal to invest about Rs 700 crores through 100 percent foreign direct investment (FDI) is still lying with the Department of Industrial Policy and Promotion (DIPP), when it approved by DIPP, it would be forwarded to FIPB for final clearance.

While slowdown woes and low consumer sentiment continue to impact businesses in western countries, foreign fashion brands are betting big on India. However, rupee's sharp fall against the US dollar as well as other foreign currencies is said to have forced Uniqlo and H&M’s to defer their plans.

H&M is the second largest single-brand FDI proposal after the Rs 10,500 crores application by Swedish chain Ikea. H&M runs over 2,500 stores across 49 markets, Germany being the topmost market, followed by the US, UK and France. Apart from H&M, the group has brands including COS, Monki, Weekday, Cheap Monday and & Other Stories.