The government has approved a proposal of British luxury apparel brand Burberry to set up a joint venture in India for single brand retailing.
The proposal by UK-based Burberry International Holdings was approved following a recommendation by the Foreign Investment Promotion Board (FIPB), an official statement said.
The FIPB in a meeting held on November 20 cleared the Burberry International Holdings' proposal to set up a joint venture in India with 51 per cent equity participation for single brand retailing.
The 153-year old company, famous for its high-end apparels, like trench coats and mufflers, plans to tie-up with Gurgaon-based fashion retail house Genesis Colors for setting up single brand exclusive retail outlets.
Burberry plans to invest Rs 16.72 crore (Rs 167.2 million) and is aiming at over 20 stores across the country.
The company currently runs two outlets in India under a franchisee arrangement with Media Star. That arrangement is set to be dissolved when the new joint venture is established.
It entered the Chinese market a few years ago. Currently, it operates 44 outlets and hopes to replicate the success in India.
Burberry reported a turnover of 995.4 million pound sterling from its worldwide operations in 2008-09, of which 484.4 million pound sterling came from retail business.
