Hennes & Mauritz, Swedish clothing retailer, has received the nod from the Foreign Investment Promotion Board (FIPB) to bring in foreign direct investment of Rs 720 crore.
The company, which faced a delay of seven months before receiving approval, intends to open stores across India. It had applied to the Department of Industrial Policy & Promotion (DIPP) in April 2013 to enter single-brand retail.
India allows 100 per cent FDI in single-brand retail. Foreign investors however, are required to source 30 per cent of their inputs domestically.
The company is yet to disclose its plans on where it will be opening its first few stores.
H&M is the second Swedish company, after IKEA, to get permission to invest in single-brand retail in the country.