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Massimo Dutti's India entry plan hits govt roadblock
Jul '12
After the successful launch of its flagship Zara brand in India, Spain-based Inditex SA was eager to sell its Massimo Dutti apparels in the South Asian country.
However, the plan will now have to be put down as India’s Foreign Investment Promotion Board (FIPB) has rejected the application of Zara Holdings BV to sell Massimo Dutti apparels through a joint venture with Trent Ltd., a retail arm of Tata Group.
Earlier, the FIPB had put Zara Holdings’ application on hold saying that an investor must own the brand that it wants to bring to India. While Massimo Dutti is owned by Spanish retail chain Inditex, the application was forwarded by Zara Holdings, a wholly-owned subsidiary of the Spanish retailer.
In India, Zara is present through a 51:49 joint venture partnership with Trent. The joint venture currently operates eight Zara outlets in Delhi, Mumbai, Bangalore and Pune.
Inditex is the world’s largest apparel retailer with more than 5,600 outlets in eight formats across the globe.

Fibre2fashion News Desk - India

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