Italian luxury fashion brand Canali will set up a 51:49 per cent joint venture with Genesis Luxury Fashion for retail operations in India.
The two companies earlier had a distribution arrangement and were operating five exclusive mono brand boutiques in the country.
Canali had filed an application with Foreign Investment Promotion Board seeking its approval for setting up the joint venture.
On Friday, FIPB had approved the investment proposal and the joint venture will invest Rs 7.65 crore.
When contacted Mr Sanjay Kapoor, Managing Director, Genesis Luxury told Business Line : “The new partnership will help accelerate the business further. We are planning to open 10-15 more stores over the next three-four years.”
Asked if Canali will source products out of India, Mr Kapoor said that the mandatory sourcing clause doesn't apply.
“That clause will only apply to brands who want to come in with 100 per cent control. Canali is doing a 51:49 joint venture with us as they are confident that this is a better model for them to expand their brand presence in India,” he said.