LVMH to open duty-free shops

NEW DELHI: After entering the Indian retail sector through foreign direct investment in single rand retail, Louis Vuitton (LVMH) has now got an approval from the Foreign Investment Promotion Board (FIPB) to operate duty free shops at both Delhi International Airport and Mumbai International Airport.

The initial investment in the two ventures is expected to be around Rs 40 crore. The company will operate these duty-free shops through its Singapore-based subsidiary DFS Venture Singapore.

Both duty-free ventures would be 100% subsidiaries of the DFS Group.Due to its worldwide network of sourcing products, it has been stressed, the group will be able to sell international brands at reasonable prices.

The company also plans to set up infrastructure related to its activity at the Mumbai international airport. It plans to set up bonded warehouses for its goods. The company will invest about Rs 18 crore at the Delhi airport while it plans to invest Rs 22.5 crore at the Mumbai airport.