India’s Foreign Investment Promotion Board (FIPB) has rejected an application from fashion brand Zara to expand its business in India. Inditex, the Spanish retailer which owns Zara, planned to introduce another of its labels, Massimo Dutti, to the Indian market through its joint venture with Trent – the Tata Group’s retail arm.
The FIPB did not provide reasons for its decision.
An Inditex spokesperson told India Business Law Journal that Inditex “is processing a joint venture to incorporate the Massimo Dutti brand to India. At this stage, the group is [on] its way to present the administrative requirements to create the company.” Inditex had no comments about the FIPB’s decision.
