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Swiss based luxury group Richemont which owns powerhouse brands such as Cartier or Montblanc has announced it had applied for mono-brand store licenses in India. Several Richemont Group brands are expected to makean initial investment of US$5 million, a senior Indian government official said on Thursday.
In mono-brand retail, India allows 100 percent foreign direct investment on condition that a third of materials used in products is sourced locally. “We see India as a market with long-term growth potential for Richemont’s Maisons (brands),” a spokesman for Richemont said in an email sent to Reuters on Thursday.
India allows 100 percent foreign direct investment on condition that a third of materials used in products is sourced locally. “We see India as a market with long-term growth potential for Richemont’s Maisons (brands),” a spokesman for Richemont said in an email sent to Reuters.
However, India’s Government will not relax sourcing conditions for the luxury brand, even if it finds it difficult to procure 30 percent of merchandise from local suppliers, the official said. “They might have thought about these conditions before applying. There is no question of relaxing outsourcing conditions,” the official said.
CPP-LUXURY.com |
Richemont Group companies to open mono-brand stores in India
