Inditex, the EUR13.8-billion global fashion retailer, might be close to launching its Massimo Dutti store format in India. The Indian Foreign Investment Promotion Board (FIPB), the key wing in the finance ministry for clearing foreign direct investment (FDI) proposals, is slated to discuss an application made by the group at its meeting on Saturday.
Inditex, headquartered in Spain, and the Tata Group’s retail chain, Trent, had signed an agreement last year for bringing Massimo Dutti to India. Inditex already has its flagship Zara stores in India through a joint venture with Trent. While Inditex holds 51 percent, Trent has 49 percent in the venture.
In the season of single-brand retail, which recently saw a big-bang announcement by IKEA, the Scandinavian furniture major, the Inditex proposal at FIPB has triggered speculation about the chain raising FDI in the Indian venture. But Inditex indicated its venture with the Tata Group would continue. The FIPB application was made by Zara Holdings Netherlands, a group unit. According to the deal signed last year, Massimo Dutti would be a joint venture between Zara Holdings and Trent.
(Source: Business Standard )