American hat maker and apparel retailer American Hat Co. will be the first to sell the American hat and hat-making equipment used in Indian factories, the company said on Friday.
The company said that the products will be sold through the Indian online marketplace, the Indian Apparel Market, and in stores.
American Hat Co., the third-largest American hat manufacturer, is in talks with Indian firms and companies to acquire a majority stake in Indian hat manufacturing equipment, it said in a statement.
The company has been trying to find an agreement with Indian companies for about three years to bring American hats and equipment to India, said the statement.
The deal will be worth around $4 billion, it added.
The deal with American Hat is expected to be finalised by the end of this year.
American hats are widely exported in the US, including to the UK and the UK, but are also popular with the Indian diaspora.
Indian companies, such as American Hat, have been looking to buy Indian companies to manufacture their products and have also invested in Indian companies.
American Hat has been working with Indian company JV Technologies for more than a decade to produce American hats, which were the first American hats made in India.
American hat makers in the past have made similar deals with European companies such as French-made Miele and Dutch-made De Meer.
In December, Indian government sources said that American Hat will invest up to $50 million in the Indian e-commerce market.
American hat manufacturers have invested in e-tailer Flipkart, which is already one of the biggest e-retailers in India with over 2.5 million customers.