Mothercare had announced the JV last year through its subsidiary, Mothercare UK, and has already set up two single-brand stores in the country. The approval has been given to Mothercare to subscribe to the equity shares of an Indian company for retail trading under a single brand.
India?s FDI rules allow only 51 per cent stakes by a foreign firm in single brand retailing. Mothercare also operates in India through an agreement with Shoppers Stop, under which it runs around two dozen outlets at the Raheja Group promoted large format stores.
After introducing international fashion brands like Armani and Ferragamo in the Indian market, DLF Brands, is planning to bring at least 15 international brands by 2013 through joint ventures.