H&M store opening pushed to November

Apart from the delay in regulatory nods, political uncertainties and upcoming elections are also believed to have pushed back H&M's India plans

Swedish fashion chain H&M is likely to open its first India store around Diwali this year, delaying its earlier plan of a “spring” launch, according to persons close to the development. H&M, whose application for entry into India market was cleared by the government recently, several months after it was filed, has not replied to Business Standard’s queries on specific store plans.

Apart from the delay in regulatory clearances, political uncertainties and upcoming general elections are also believed to have pushed back H&M’s India plans.

It is learnt that while the fashion chain might debut in Delhi, it is in advanced negotiation for space in Mumbai and Bangalore as well. A store in Noida (Uttar Pradesh) is also expected soon. A top executive in a real estate consultancy said H&M had booked space in Delhi and Noida, but would sign some of the deals with the developers after the formation of the new government at the Centre.

“They (H&M) have talked to us through an intermediary, but not signed the deal yet. I believe they have spoken to many developers but are yet to sign any deal,” said Anupam T, CEO (malls) at Runwal Group, a Mumbai-based realtor.

Coinciding with the H&M activity is the buzz on land deals linked to another Swedish group, Ikea. It is learnt that the furniture major is in talks with authorities in at least five states - Delhi, Haryana, Uttar Pradesh, Maharashtra and Karnataka - for buying or leasing space. Tamil Nadu and Andhra Pradesh might also be of interest to the company for setting up stores, which will spread out across 120,000 sq ft excluding parking area. Around two of these land deals are likely to fructify in the next one or two months for Ikea, a source said.

Ikea is likely to wait till the election results before actually inking any land deal for its stores, said a source.

The furniture major’s first India store is likely to come up only by 2016 as construction will take at least two years after decision on land is finalised.
FASHIONABLE DELAY

• Apart from the delay in regulatory clearances, political uncertainties and upcoming general elections are also believed to have pushed back H&M’s India plans
• It is learnt that while the fashion chain might debut in Delhi, it is in advanced negotiation for space in Mumbai and Bangalore as well