Marks & Spencer ups India sourcing

India - UK retailer Marks & Spencer will source up to 70% of apparel for its India stores locally via a partnership with Reliance Retail.

The 51:49 Marks & Spencer and Reliance tie-up recently set up a second sourcing facility in Bangalore to cater specifically to the India market, CEO of Marks & Spencer Mark Ashman told local media.

"Going forward, 70% of the volume of what we sell in our stores will be made in India," he said.

The new agreement is aimed at lowering the retailer's percentage of imported apparel, which at present attracts import duties of almost 38%.

Reliance Retail also won a franchise deal with UK toymaker Hamley's. It will open two flagship stores in Mumbai and New Delhi in 2009, with expansion across India over the next few years, the company said.

Marks & Spencer's move is a break away from the trend of global retailers exiting the India sourcing market. Earlier this month, Timberland announced plans to remove its US$30 million sourcing operation out of India, hurt by weak consumer demand. Its exit follows a similar move by UK retailer Next, which closed its operations from Bangalore earlier this year. Liz Clairborne too, is tipped to close its India sourcing operations, believed to be worth approximately US$100 million.