Italian designer Dolce & Gabbana, known for its big cat prints and gold glitz, plans to open two shops in New Delhi--its first directly-operated outlets in India.
The deal with real estate developer DLF Group is for two shops in the Emporio mall with opening planned at the end of this year, Dolce & Gabbana said in a statement.
There will be a Dolce & Gabbana shop and one for its more informal line, D&G Dolce & Gabbana.
"We see this project as the first step of a long-term investment plan," Cristiana Ruella, the group's managing director, said in the statement.
"There is no doubt that India is a promising market with great potential," she added.
Dolce & Gabbana has a total of 90 directly-operated stores worldwide.
Italian catwalk competitor Versace opened a shop in Mumbai last year and got a publicity boost in the country earlier this month when British actress Elizabeth Hurley wore a dress by the designer for her wedding in India to businessman Arun Nayar.
Italian designers Gucci and Giorgio Armani are also moving into the country, where non-Italian brands Hugo Boss, Burberry, Cartier, Chanel, Louis Vuitton and Tommy Hilfiger already have outlets.
India opened up single-brand retail ventures in February 2006 by allowing 51 per cent foreign direct investment in them.
Dolce & Gabbana said in the statement it expected operating profit (earnings before interest and tax) to be 229.1 million euros in the year ending March 31, 2007 on revenues up 30 percent to 1.05 billion euros.
The designers' latest advertising campaign triggered criticism in Europe from Spain's government and human rights group Amnesty International by featuring a picture of a man holding down a woman by her wrists while other men looked casually on.
