Honda Motorcycle & Scooter India (HMSI) and Swedish fashion retail giant Hennes & Mauritz (H&M)
have sought government permission for opening up of single- brand retail stores in the country.
HMSI, the wholly-owned subsidiary of the Japanese auto giant Honda, which had sought approval of the Foreign Investment Promotion Board (FIPB), has proposed to sell products like two-wheeler motor cycles, spare parts and accessories in their stores. At present, the firm sell their vehicles as well as spare parts through franchises.
On the other hand, H&M has proposed an investment of 100 million euros (around Rs 700 crore) for opening up of 50 stores in the country.
Secretary in the Department of Industrial Policy and Promotion (DIPP), Saurabh Chandra, confirmed the development. "H&M has applied and Honda has applied," he said.
Since the government relaxed FDI norms last year, many foreign retailers have taken steps to open stores in India. So far IKEA's Rs 10,500 crore
investment plan to set up its chain of stores across India remains the biggest proposal.
Globally, H&M has around 2,800 stores spread across 49 markets, employing over one lakh people. While Germany is its largest market, US is its second biggest market followed by UK and France.
Founded in Sweden in 1947, the group, in addition to H&M, has brands including COS, Monki, Weekday and Cheap Monday and Other Stories as well as H&M Home.With inputs from PTI