The clothing retailer already has a network of production partners in the country. This move is intended to expand this network with new investments.
The publication added that Fast Retailing will partner with approximately 20 production partners.
The brand’s current production partners in the country include Maral Overseas, Shingora Textiles, Silver Spark Apparel, Shahi Exports, Brandix Lanka, Tangerine Design, SM Lulla Industries Worldwide and Penguin Apparels.
One of the sources was quoted by The ET as saying: “The investment amount will be significant because Uniqlo is serious about India and views it as an important market. Unlike the existing facilities in India, which cater more towards exports, the production partners that Uniqlo will bring to India will be specifically meant for the domestic market.”
The Japanese brand entered the Indian market in 2019, but its expansion plan was delayed due to the pandemic.
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Uniqlo currently has stores in Lucknow, Chandigarh and Delhi. It plans to enter other cities, including Mumbai and Bangalore.
In its financial result update for the first half of fiscal year 2023, Fast Retailing reported revenue of Y1.46tn ($10.2bn), driven by strong performances from operations in regions.
The retailer reported significant increases in revenue and profit in Southeast Asia, India and Australia, North America and Europe.
In April this year, Fast Retailing announced that Uniqlo and Theory opened a new 1,450m² joint store in London, UK.