Tuesday, July 12, 2005

Marks $ Spencer to buy 100% shares in India

Marks & Spencer (M&S), the UK's largest clothing retailer, is planning to create a wholly-owned brand by acquiring the remaining shares it does not own in its Indian venture. The retail giant brand, which runs franchisee operations in India, is buying out the Indian stakeholders, Vandana Shroff and Nimisha S Rau, in Marks & Spencer (India) at Rs 10 per share. The move will enable the Marks & Spencer to hold 100% stake in its venture in India. The retail giant is also planning to subscribe to further equity shares of M&S (India). Marks & Spencer (India) has sought the approval of the Foreign Investment and Promotion Board (FIPB) for the investment. The move is expected to increase the brand equity of retail giant. The plan behind the move to invest in M&S India is part of the overall strategy to step up outsourcing from India. India is turning out to be the major sourcing base for the textile products. Post-investment, Marks & Spencer India proposes to source and procure goods - including textiles, furniture and home furnishing - from India and sell it to its franchisees in India.