 "Hennes & Mauritz")
Swedish fashion retail company Hennes & Mauritz (H&M) has sought government permission to enter the single-brand retail segment in India with a proposed investment of 100 million euros (around Rs 700 crore).
According to official sources, the company has applied for 100 per cent foreign direct investment to the Department of Industrial Policy and Promotion for opening 50 stores over a period of time.
"The investment proposed in the application is 100 million euros," a source said. The timeline of the investment, however, could not be ascertained.
When contacted a spokesperson of H&M in Stockholm confirmed that the company has sought permission to enter the Indian market.
"It is correct that H&M has filed for single brand retail entry into India, but there are no concrete plans today when we would be opening our first stores, or how many stores that we would be opening in the future," the spokesperson said in an e-mailed response.
Welcoming H&M's application, Commerce and Industry Minister Anand Sharma said in a statement: "After the liberalisation of FDI policy in single brand retail, there has been a considerable interest shown by all global retail majors. The government remains committed to liberal economic reforms agenda."
He further said the government viewed foreign investments as a source of technology, finance and means of creating gainful employment in the country.
Globally, H&M has around 2,800 stores spread across 49 markets, employing over one lakh people. While Germany is its largest market, US is its second biggest market followed by UK and France.
Founded in Sweden in 1947, in addition to H&M, the group has brands including COS, Monki, Weekday and Cheap Monday and Other Stories as well as H&M Home. In 2012, it had posted sales of SEK 140.95 billion.
Since the government relaxed FDI norms last year, many foreign retailers have taken steps to open stores in India. So far IKEA's Rs 10,500 crore investment plan to set up its chain of stores across India remains the biggest proposal.
