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It is getting fashionable to get into high street fashion
in India and DLF has decided to move into it as a part of its diversification
plans after sweeping the highest amount through its IPO last year, making
its promoter, K P Singh one of the richest men in the world.
This is barely a couple of months after the group signing
up with another Italian fashion design house, Dolce and Gabbana.
An application has been apparently made to the Foreign
Investment Promotion Board according to a report in Economic Times but
it may be too early to comment on the outcome of the talks.
Armani plans to invest a nominal Rs.10 million ($250,000)
only in this the venture. The new company will also act as a wholesaler
supplying Armani products to other independent retailers.
As in the case of Dolce & Gabbana venture signed
in December last year, Giorgio Armani will hold the majority shareholding
of 51% in the joint venture, maximum permissible for a single-brand foreign
retailer in India.
The first Armani store will be set up in New Delhi,
according to sources.
As in the recent past on such deals brewing, DLF refuses
to comment
A spokesman for the Armani group was equally evasive.
'It is correct that the Armani group is in contact with several potential
partners in India, including DLF. But it is premature for the time being
to make any other declaration,' said the spokesperson.
In December, the Foreign Investment Promotion Board approved
an investment of Rs. 365 million($ 91 million) by Dolce & Gabbana
in a 51:49 joint venture with DLF.
Luxury fashion brands are stepping up their presence
in India and DLF is utilizing its leverage of available retail space to
grab an increasing share in this arena.
The 73 year old Giorgio Armani who speaks only Italian
and no English is reportedly very excited to be in this huge market ready
for his luxurious and signature Armani Collections.
He created waves again last Sunday at the Italy Fashion
Week that started in Milan on February 17, with the fashion guru displaying
his latest collections.
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