Disney Partners With Indian Company

By Associated Press |
Posted October 9, 2006, 9:41 AM EDT

NEW DELHI -- Walt Disney Co. has partnered with an Indian company to sell its products in India as part of efforts to expand its presence in one of the world's fastest growing markets, a company official said Monday.

The Burbank, Calif.-based company plans to unveil the details of the agreement with the Jaipuria Group later this week, Disney spokesman K.R. Seshasayee said.

Seshasayee declined to comment on a newspaper report Monday that said the agreement will allow Disney to set up retail stores to sell a variety of its products, from toys to apparel.

The partnership comes three months after Disney bought Hungama, a local children's cable and satellite TV channel, for $30.5 million.

It also appeared to be a response to recent policy changes in India.

Earlier this year, the government said it would allow foreign companies to invest in retail stores for single-brand products in partnership with Indian companies.

Several international brands such as Nokia, Marks & Spencer and Adidas have since moved to set up their own stores. Previously, their products were sold through franchises.

However, multi-product retail companies such as Wal-Mart Stores Inc. are still barred from opening stores in India.

Plans by the government to fully open retail trade to foreign investment have been blocked by opposition from communist parties, whose support is crucial to the ruling coalition's parliamentary majority.