Urban Factory, a United States-based apparel brand, has entered India independently and aims to open stores in Bengaluru and Hyderabad by the mid of this year.

Madhuri Lakkapragada, founder of Urban Factory, said that all styles that come in India are delayed by a season and unfortunately, fashion comes to India in the end.

She added that they want to address this gap by bringing current customised styles in India.

Last year, India had liberalised norms for foreign direct investment in single-brand retail, allowing brands such as Urban Factory to set up stores in the country.

Urban Factory is a women's apparel brand which focuses on professional and casual fashion. The brand plans to launch men's clothing and accessories as well in the next six months.

The company plans to start its first mono brand store in Hyderabad Forum Mall in May and in Bengaluru by June. The one-year-old company plans to sell through multi-brand stores as well by April.

According to a CII BCG report, India's retail market has the potential to grow from $630 billion in 2015 to $1,100-1,200 billion in 2020 on the back of rising income levels and increased urbanisation.

Retail sector will take advantage of a large, young population adding to the workforce, 70% increase in income levels, nuclearisation of families and increasing urbanization, according to the report.

International brands like H&M, GAP and Aeropostale have lately entered the Indian market, which is also seeing a surge in foreign players entering the country using the online channel.