H&M's Rs 700cr FDI proposal gets DIPP nod

The much awaited FDI proposal of Hennes & Mauritz (H&M)

is said to have received the green signal from the Department of Industrial Policy and Promotion (DIPP). The Swedish clothing giant had made an investment proposal worth Rs 700 crores to enter the Indian market.

As per sources, the Stockholm-headquartered fashion company’s top management including chief executive Karl Johan Persson met DIPP officials last week to discuss and seek a nod to their FDI proposal. Now, FIPB, under the Chairmanship of Economic Affairs Secretary Arvind Mayaram would consider the proposal at its meeting on October 18. Once the retailer gets FIPB approval, H&M will go ahead with its plans to open 50 stores in the country.

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 (Rs 839.6 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.