Italian designer goods maker Gucci can now go ahead with its plans to enter the Indian retail market through single brand stores with the government allowing it to pick up a majority stake in its Indian franchisee Luxury Goods Retail Pvt Ltd.
The government has cleared a proposal by Luxury Goods Retail for foreign equity participation of 51 per cent by Gucci Group NV, Netherlands with an investment of Rs 1.04 crore for retailing Gucci brands in the country.
Luxury Goods Retail currently sells products under the Gucci brand in India under a franchise agreement.
Gucci India had in 2006 entered into a franchise agreement with Murjani Retail for selling its products in the country. The pact was terminated in July 2009 and replaced with a new franchise.
In India, the company has two stores located in Delhi and Mumbai. It had last year announced plans to expand to other metros, including Bangalore, and expand its product range in the country to house its men's and women's collections of ready-to-wear, handbags, shoes, watches and other accessories.
Gucci products are sold in over 50 countries through stores owned by Gucci Group and also through franchisee agreements.