The government today approved a Rs 180 crore investment proposal of Dubai-based Damas LLC for setting up a retail joint venture with Gitanjali Lifestyles for opening jewellery and accessories stores.
Damas will own 51 per cent equity in the proposed JV, sources said.
"We will be opening our first store in Delhi next month," Gitanjali Group Chairman Mehul Choksi told PTI after the proposal got the government's nod.
The proposed JV firm would open about 100 stores in three years with an investment of over Rs 300 crore, he said.
Earlier, the Foreign Investment Promotion Board (FIPB) had recommended to the government for the single brand retail trading JV. Foreign direct investment up to 51 per cent is allowed in single brand retail.
The investment in the JV would be made by way of subscribing to the equity shares compulsory convertible preference shares and compulsory debentures on need basis, sources said.
The proposed JV would undertake business of single brand retail trading of all kinds of jewellery and accessories such as necklaces, pendants, mobile charm and hair clips under 'Damas' collections Al Zain, Aura, Boudoor, Diabla and others.