A joint venture planned between Italian apparel maker Diesel and Indian denim major Arvind Mills has been approved by the Foreign Investment Promotion Board according to local media reports.

The joint venture company, Diesel India Fashion Arvind Pvt Ltd, will have a total paid up capital of INR10 crore (US$2.5m) and expects to open its first flagship stores in Delhi and Mumbai by the end of this year.

A total of 15 stores are due to be rolled out in the next three years, selling Diesel branded jeans, casual apparel innerwear for men and women at prices the same as those in international markets.

The products will be imported to India either from Italy or other places where Diesel manufactures.

India allows 51 per cent foreign direct investment in single brand retail, so Diesel has the larger stake in the 51:49 joint venture.