Burberry is poised to enter a joint venture with Indian fashion retailer Genesis Colors, pending government approval in India.
The luxury British heritage label is set to sign the deal in a bid to expand its presence in India, which has a thriving luxury goods trade due to its strong stock market. If the joint venture goes ahead, it is understood that Burberry will invest £2.1m to take a 51% stake and will look at opening 21 stores across India.
Genesis Colors already has distribution rights in India for a number of other luxury brands including Jimmy Choo, Canali, Aigner, Paul Smith, Just Cavalli and Bottega Veneta.
Burberry already runs two stores in India through a franchise agreement with Media Star but the partnership would be terminated once the new joint venture is signed. Burberry then hopes to expand rapidly in India, repeating the recent success it has enjoyed in China, where it now operates 44 stores and is experiencing double-digit growth.
Expansion in India is part of a wider move by Burberry to grow the retail side of its business, which is outperforming its wholesale division.
In its interim results on Wednesday, Burberry posted a retail sales increase of 14% on last year to £311.6m, while wholesale sales fell 23% to £216.1m.