Louis Vuitton Hennessy to siphon Rs. 58 crores in retail sector
Louis Vuitton Malletier has planned to acquire LV Trading, which already distributes its goods in India, investing Rs.26.5 crore whereas Fendi will procure Fun Fashion India, after siphoning Rs.32.2 crore.
Both are fractions of the France-based multinational Louis Vuitton Moet Hennessy.
Nike is the only multinational to have penetrated earlier into the Indian retail sector having obtained permission from Foreign Investment Promotion Board (FIPB).
Nike although had taken an indirect route by entering into an agreement with Moja Shoes to sell Nike's goods in India.
Moja gets foreign direct investment from Tano India Private Equity Fund.
Applications of Fendi and Louis Vuitton are pending for approval by FIPB
Indian company will work as a joint venture amid Chordia Fashion & Fendi, following investments by Fendi.
It will be distributing products like ready to wear cloths, bags, accessories, watches, jewelry and shoes through its store in India.
Fendi has prearranged an undertaking with Indian government that it will be manufacturing its products outside India and upon branding will sell them through its store in India.
(The Economic Times)