UK-based retail major Mothercare on Tuesday received government’s approval to invest Rs 25.87 crore in a retail joint venture. The specialty retailer of maternity garments, baby clothes and equipment, will pick up a 30 per cent stake in a joint venture with DLF Brands, the retail management arm of realty giant DLF.
Mothercare had announced the JV last year through its subsidiary, Mothercare UK has already set up two single-brand stores in the country. The approval has been given to Mothercare to subscribe to the equity shares of an Indian company for retail trading under single brand, as per an official release.
India’s FDI rules allow only 51 per cent stake by foreign firm in single brand retailing. Mothercare also operates in India through an agreement with Shoppers Stop, under which it runs around two dozen outlets at the Raheja Group promoted large format stores.