British retailer Marks and Spencer gets FIPB approval

09 Jul '08

2 min read

Marks and Spencer Group plc (Marks & Spencer) is pleased to announce receipt of approval from the Foreign Investment Promotion Board to set up Marks and Spencer Reliance India Pvt Ltd, the joint venture with Reliance Retail, part of the Reliance Industries Group.

The JV will see an FDI inflow of around £29m (in cash or in kind) with Marks & Spencer holding 51% in the venture, and Reliance Retail taking the remaining 49%.

This is an initial investment into the JV, with both parties agreeing to provide further funding in the future.

The new joint venture will have the right to operate Marks & Spencer stores in India selling a wide range of women's, men's and children's clothing as well as homewares.

It will aim to open at least 50 new stores in India over the next five years.

This announcement is part of Marks & Spencer's plans to grow its international business to 15-20 per cent of Group revenues within the next five years.

Mr. Mark Ashman CEO of Marks and Spencer Reliance India Pvt Ltd said: “This approval is a further milestone in establishing Marks & Spencer as a major retail brand in India.

We are delighted with this opportunity that allows us to be closer to our customers and are now looking forward with our partners Reliance Retail to opening larger stores and offering Marks and Spencer products at more affordable prices.

Marks and Spencer Group plc

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