Apparel and accessory retailer Giordano to expand

Top international apparel and accessory retailer Giordano International is planning for an expansion in India by investing through the permitted route of 51% FDI in single-brand retail. Giordano is already present in India through its exclusive distributor, Giordano Fashions India, which is owned by Dubai-based Emirates Trading Agency (ETA) group. The Indian distributor opened the first Giordano store in the country in May 2006. Giordano now has five stores in India located in Chennai, Ahmedabad, Delhi and Mumbai. Giordano International has proposed to pick up a 51% stake in Giordano Fashions (India) Pvt Ltd, the company set up to establish a chain of Giordano stores in India, subsequent to the approval of the Foreign Investment Promotion Board (FIPB). The new company will have a total equity base of Rs 10 crore, of which the Hong Kong-based apparel retailer will invest about 51%. Giordano International will be investing the funds through its wholly-owned subsidiary, Giordano Mauritius Ltd. The Indian promoters in the venture are Chennai-based businessmen Ameer Hamsha Ahamed Shakir and Mohamed Hassan, apart from the non-resident Indian promoters, Hameed Salahuddin and Ahmed Salahuddin of the ETA group. The $4-billion ETA group has a joint venture with Giordano International, called Giordano Fashions, which is the master franchise holder and exclusive distributor of Giordano products in the Middle East, North Africa and India.