Indian finance ministry has raised concerns with the department of industrial policy and promotion (DIPP) over a possible violation of the FDI policy on single-brand retail by UK-based retailer Marks & Spencer (M&S).
The ministry has aked DIPP whether M&S' act of selling multiple brands in a single store is in line with the FDI regulations.
M&S retails its sub-brands, such as Limited Collection, Autograph, Collezione, North Coast, Blue Harbour, Savile Row Inspired, Indigo Collection and per una at its 28 stores in the country.
A DIPP official was quoted by The Economic Times as saying that according to the policy all the foreign brands have to be registered and branded during manufacture.
"If this (selling subbrands) is the case, then it amounts to multi-brand retail. Hence, we are not in favour of single-brand retailers selling sub-brands," the official added.
However, M&S spokesperson has denied violation of any regulation by the chain.
"Under our singlebrand licence in India, we only sell M&S products, including our subbrands, which are only available at M&S. Our sub-brands help customers easily shop our wide choice of fashions...As we have not received a letter from DIPP, it would be inappropriate to comment any further," the spokesperson claimed.
