Canali Holdings to invest Rs 7.65 cr for Indian JV

NEW DELHI: Italy's luxury fashion brand Canali will invest Rs 7.65 crore in India to set up a joint venture with 51 per cent ownership.

The Foreign Investment and promotion Board on Friday cleared Canali Holding's proposal to set up the JV with 51 per cent foreign equity participation for single-brand retailing.

Canali has been selling products in India in partnership with Genesis Luxury Fashion Pvt Ltd since 2007 through a marketing and distribution agreement.

Genesis operates five Canali stores in the country and the two parties are understood to be in the process of setting up a JV. When contacted Genesis Luxury Fashion's spokesperson did not offer any comments.

Canali had proposed investment in India soon after the government notified 100 per cent foreign direct investment in single brand retail.

According to industry observers, it has decided to restrict holding to only 51 per cent because a higher stake would have required it to mandatorily source 30 per cent of its products from Indian small and medium enterprises.

Genesis also retails a host of other international luxury labels including Paul Smith, Bottega Veneta, Jimmy Choo, Etro and Tumi. It also has a joint venture with Burberry of UK.