NEW DELHI: Swedish budget fashion brand H&M and UK supermarket chain Tesco are both planning to expand in India, in a sign that foreign retailers are increasingly targeting the subcontinent's fast-growth retail sector.
Having received initial approval from the Foreign Investment Promotion Board last December to invest $115m (Rs 720 crore), sources have told Livemint that H&M has received regulatory approval to open its first store in India.
Having received initial approval from the Foreign Investment Promotion Board last December to invest $115m (Rs 720 crore), sources have told Livemint that H&M has received regulatory approval to open its first store in India.
H&M should be in a position to open its first flagship store there in the first week of November.
Without revealing which city it planned to target, it is reported H&M hopes to open 50 stores in the country over the next few years and the sources also revealed it wants to expand into online sales.
In a further boost for international retail brands, a senior Tata Group official said on Monday that it expected final regulatory approval for its Trent Hypermarket subsidiary to form a joint venture with Tesco, the UK supermarket giant.
Noel Tata, vice-chairman of Trent Ltd, said the two companies planned to open multi-brand retail stores once they received final approval.
Tesco has proposed initial investment worth $110m (Rs 680 crore) and became the first global retailer to apply for multi-brand retailing after the government permitted foreign investment of 51% in the sector.
Spanish clothing retailer Zara is already a partner with Trent. Elsewhere, Japan's Uniqlo and GAP, the US brand, are also known to be actively seeking to enter the Indian market.
Without revealing which city it planned to target, it is reported H&M hopes to open 50 stores in the country over the next few years and the sources also revealed it wants to expand into online sales.
In a further boost for international retail brands, a senior Tata Group official said on Monday that it expected final regulatory approval for its Trent Hypermarket subsidiary to form a joint venture with Tesco, the UK supermarket giant.
Noel Tata, vice-chairman of Trent Ltd, said the two companies planned to open multi-brand retail stores once they received final approval.
Tesco has proposed initial investment worth $110m (Rs 680 crore) and became the first global retailer to apply for multi-brand retailing after the government permitted foreign investment of 51% in the sector.
Spanish clothing retailer Zara is already a partner with Trent. Elsewhere, Japan's Uniqlo and GAP, the US brand, are also known to be actively seeking to enter the Indian market.
According to a report last month from the Associated Chambers of Commerce and Industry of India, the overall retail market in India is growing at 15% a year and is expected to double in value between 2011-12 and 2016-17.
Data sourced from Livemint; additional content by Warc staff