American fashion apparel major Tommy Hilfiger received Foreign Investment Promotion Board (FIPB) approval to run own stores and start e-commerce in India. The approval, granted earlier this week, came nearly four years after its Indian arm, Tommy Hilfiger Arvind Fashion, moved the application.
NYSE-listed PVH Corp and textile tycoon Sanjay Lalbhai-led Arvind equally own Tommy Hilfiger’s Indian operations. When contacted, the local unit declined to comment on the development.
In March, India announced a new set of guidelines that allowed 100 per cent FDI in e-commerce ‘marketplace’ – defined as a digital platform that acts as a facilitator between buyer and seller. But FDI in e-commerce companies that own inventories of goods and services and sell directly to consumers is prohibited.
Tommy Hilfiger was one of the first global fashion brands to enter the country nearly 12 years ago. It has 200 points of sale, including 97 exclusive shops, with a retail turnover estimated at around Rs 700 crore, or slightly over 100 million US dollar.
