H&M seeks FIPB nod to invest in India

Swedish fast-fashion giant Hennes and Mauritz (H&M), has

sought permission from the Foreign Investment Promotion Board to invest Rs 720 crores in India. The plan is to start a fully-owned company that will open 50 H&M stores in the country. Many foreign brands are eyeing entry in developing and promising economy like India owing to slowing sales in key European and US markets.

If the proposal is approved by FIPB, India will be the 50th market for H&M that had sales of 18 billion dollars (Rs 97,002 crores) in 2012 from its over 2,800 stores globally. The application was filed with FIPB, a unit of the finance ministry that clears foreign direct investment proposals through law firm Titus and Co.

The retail giant says in its application it will fulfil all conditions of the country's single-brand retail policy that includes sourcing locally 30 percent of the total value of the goods purchased. It also assured it will not retail goods using the e-commerce platform. H&M will engage in import, export, marketing, distribution, warehousing, manufacture, production and retail trade of products carrying the H&M brand. If its application is approved, it will sell 10 categories of products in India such as clothes, footwear, cosmetics, handbags and fashion accessories, home furnishing, home decoration, toys, kitchen utensils and cutlery among others.