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.
The government has cleared a proposal by Luxury Goods Retail for foreign equity participation of 51% 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.
