The regulatory authorities in India approved a proposal from Inditex SA of Spain to sell its Massimo Dutti brand in apparel, clothing footwear and other items. Inditex SA is the world's biggest clothing retailer and is the owner of the renowned Zara brand.
India previously had rejected an application from Inditex's unit Zara Holdings BV to sell the upscale brand in the country. This would be done through a joint venture with the retail arm f Tata Group, Tent Ltd last July 2012.
The Foreign Investment Promotion Board last Friday had issued clearance for the proposal as part of its approvals for fifteen foreign direct investment programs worth a total of INR20.5 billion or USD330.3 million.
The joint venture would have Inditex owning 51% while Trent would be holding 49%. The application was made through Grupo Massimo Dutti SA, operating as a subsidiary of the EUR13.8 billion Spanish firm. The application would incude an investment worth EUR1.5 million or INR10 crore and the opening of five Massimo Dutti stores throughout the country.
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