Shein could reportedly only reenter India only under a strict licensing agreement with Reliance Industries.
What Happened? The Chinese fast-fashion giant agreed for Mukesh Ambani-led Reliance to fully own its Indian business, sources told Bloomberg. They also said that Shein agreed to support over 25,000 local suppliers and offer production training for them to produce Shein-branded products globally.
The deal aims to capitalise on rising consumer demand and boost exports of made-in-India products by around ₹50,000 crore rupees, the sources told the business publication.
Previously banned in India, Shein relocated its headquarters to Singapore in 2021. The new agreement ensures compliance with India’s data security regulations, with all data generated in India stored locally. Shein will receive a license fee from Reliance’s Indian entity, which will be linked to profits.
This partnership aligns with India’s vision of becoming a self-reliant manufacturing hub and reducing its dependence on China. Shein’s global expansion plan includes diversifying manufacturing sources in countries like Brazil and Turkey.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.