The announcement came soon after The Foreign Investment Promotion Board (FIPB) approved the application of the company on July 4, to form a Joint Venture with Reliance Retail with 51% investment in the JV.
"The JV is looking at taking over the existing franchisee stores that we have with Planet Retail. While this will be a staggered approach, and in due course of time the franchisee agreement with Planet Retail will come to an end," Marks and Spencer Reliance India Private Ltd Chief Executive Officer Mark Ashman said, according to the news report in ET.
The new formed company floated by M&S and Reliance, will take over the 14 existing franchisee stores of Gurgaon-based Planet Retail in the country. M&S is holding discussion with Planet Retail on the modalities of eventually managing the 14 stores.
M&S holds 51 per cent stake in the new JV company with Reliance Retail which was signed in April this year. The new JV plans to pump in 29 million pounds (about Rs 2.30 billion) in the Indian market over the next five years and set up 50 stores.
The company is also aiming for increasing sourcing from India. "In next five years, we are looking at sourcing around 70 per cent of the product by volume to be sold in India sourced from the country itself. This is a critical part of our strategy which would give us a price competitive advantage," Ashman said.
M&S had also set up a sourcing office in India 18 months back. This office would remain an independent entity of the company.
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