The Government of India has approved Hennes & Mauritz GBC AB (H&M’s) foreign direct investment (FDI) proposal to invest Rs. 7.2 billion (approx. US$ 115 million) in the country, based on the recommendation of the Foreign Investment Promotion Board (FIPB), made in its meeting held on November 13, 2013.
As per the proposal, H&M would be setting up a wholly-owned subsidiary (WOS) in India to undertake single-brand retailing in the country.
In April this year, the world’s second largest apparel retailer said that it plans to open 50 stores in India, as rising income and a growing population would fuel demand for its apparel in Asia’s third-largest economy.
After India opened its doors for 100 percent FDI in single-brand retailing in January 2012, H&M has become the second Swedish retailer, after furniture and interior furnishings retailer IKEA, to get the Government’s nod.
Sweden based Hennes & Mauritz AB group is the world's second biggest clothing retailer by sales behind Spain based Inditex SA, which owns the fast fashion brand Zara.
Hennes & Mauritz AB group operates around 3,000 stores globally, and also manages other brands like COS, Monki, Weekday, Cheap Monday and & Other Stories.