India approves Swedish retailer H&M's USD115 million investment

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Swedish retailer Hennes & Mauritz (H&M) has received final approval from India's Foreign Investment Promotion Board to invest INR7.2 billion (USD115 million) in the country.

According to a report by Reuters, H&M said in April that it plans to open 50 stores in India. The Swedish multinational is hoping that a growing population and rising incomes in Asia's third-largest economy would fuel demand for its fast-changing fashions.

H&M is the second biggest fashion retailer in the world, the report said. According to its website, the retail-clothing company currently operates in 43 countries. It generated a revenue of SEK126.97 billion in 2010 and a net income of SEK18.68 billion during the same year, based on its annual report.

The Indian government in a statement said that the approval will allow the company to set up a wholly-owned subsidiary in the country.

India permitted foreign single-brand retailers to own 100% of their Indian operations in January 2012. Swedish budget furniture chain IKEA was one of the first to receive an approval for its investment plans in May this year, Reuters said.

Tags
H&m, India, Foreign Investment Promotion Board, Sweden

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