After much deliberations,the worlds second-largest apparel retailer,Hennes & Mauritz AB (H&M),on Thursday submitted a proposal through its legal firm Titus & Co for entering the Indian market through 100 per cent FDI in single-brand retail trading. The H&M proposal is the second from a Swedish firm after global furniture giant Ikea.
According to a senior commerce and industry ministry official,H&M has sought to enter India with an investment of euro 100 million (Rs 720 crore). The company proposes to open 50 stores in India. Sources said the Swedish retail arm in India will be known as H&M Retail India even though the proposed private limited company is yet to be incorporated.
Sources indicated that the two Sweden-based H&M Group companies Hennes & Mauritz GBC (99 per cent) and H&M Mauritz International AB (1 per cent) will hold stakes in Indian operations and the company is said to have applied for permission to sell 9 product categories. FE