Massimo Dutti gets FIPB nod to enter India

Massimo Dutti, the high-end fashion label from Spain’s

Inditex group, which also owns Zara, has finally got permission to open stores in India. A year after rejecting its proposal, the Foreign Investment Promotion Board (FIPB) cleared it to enter the country with a a joint venture partnership with Tata-run Trent, with which Inditex also has a 51:49 joint venture for Zara in India.

In 2009, Inditex had announced a joint venture with Tata run Trent to launch Massimo Dutti in India. However, when it applied for permission to open stores in India, FIPB cited that the application was made by Zara Holdings Netherlands, in stead of Spanish retail chain, Inditex, which was a violation of a rule framed by the Department of Industrial Policy & Promotion (DIPP) that says an investor must own the brand when it plans to launch in the country. Massimo Dutti seeks to invest 1.5 million (over Rs 10 crore) over two years to open five Massimo Dutti stores in India.

Inditex has over 6,058 stores in eight formats in 80 markets around the world. In India, Zara stores are located across Mumbai, Pune, Bangalore and Delhi. Globally, Inditex runs eight formats — Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterque.