Massimo Dutti has finally got clearance to set up shops in India. The Foreign Investment Promotion Board (FIPB) has given a green signal to the brand to open stores. The brand owned by Inditex, is venturing into the Indian market through a 51:49 joint venture with Tata Group's Trent. The joint venture will open five stores in two years with an investment of 1.5 million euros (about Rs 10 crores).
As earlier reported, the company’s original request to start operations in India was declined because it exploited the existing Zara Holdings BV structure, of which Tata also owns a 49 percent stake. The FIPB had rejected the proposal on grounds that did not meet India’s single brand retailing investment norm that mandated its original owner bring in the brand to the country.
Massimo Dutti retails in 60 countries and has 630 stores across the globe. Inditex, the owner of the brand has 6,000 stores in 86 markets in eight formats including Zara, Massimo Dutti, Pull & Bear and Uterque. The fashion retailer registered a 16 percent year-on-year growth in net sales for fiscal year 2012 at 16 billion (Rs 8,69,200 crores) and 22 percent rise in net profit of 2.4 billion (about Rs 13,000 crores).