Richemont mulls India entry

Plans to invest $5 million initially.

Geneva-based luxury goods group Richemont has applied to open shops in India. Richemont seeks entry into 'single brand' retail space, where stores sell only one brand, for an initial investment of $5 million, a senior Indian government official said on Thursday.

In the single brand sector, India allows 100 percent foreign direct investment on condition that a third of materials used in products is sourced locally.

"We see India as a market with long-term growth potential for Richemont's Maisons (brands). There is a growing market of affluent young consumers and the property market is also changing," a spokesman for Richemont announced in a media interaction.

Richemont said it planned to meet India's 30 percent sourcing requirement through the purchase of polished diamonds for the group as a whole using its India-based entity.