6 global retailers in India queue
The govt is learnt to be readying plans to ease FDI norms for single-brand retail including the condition that global firms will have to source 30% of their merchandise requirements from local small firms. HT reports. The foreign knockUpdated: Aug 13, 2012 22:22 IST
The government has received six proposals from global single-brand retailers keen on setting up operations through 51% joint ventures with domestic partners, commerce and industry minister Anand Sharma said on Monday.
Apparel maker Tommy Hillfiger, clothing retailer Brooks Brother Group, Italian jewellery brand Damiani International, French fashion brand Promod SAS, Fapa Company Ltd and NA Pali Europe SARL, an arm of sportswear retailer Quiksilver Inc, are the six global retailers queuing up to establish operations in Asia’s third-largest economy.The government has also received two other proposals — by British footwear major Pavers England and Sweden-based furniture company IKEA Group —to set shop in India through wholly-owned subsidiaries (100% FDI), Sharma said in a written reply to the Lok Sabha. "No decision has been taken on these proposals."
The government is learnt to be readying plans to ease FDI norms for single-brand retail including the condition that global firms will have to source 30% of their merchandise requirements from local small firms and artisans.
Globally, single-brand retail follow a business model of 100% ownership and retail giants have been reluctant to set shop in India citing restrictive conditions.
“FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly. No decision has been taken to the modify the sourcing norms,” Sharma said.
Last year, political compulsions had coerced the government to quickly bottle up the move to allow FDI in multi-brand retail.
It had, however, thrown open the gates for single brand retail in the hope that marquee brands such Prada, IKEA, and sports goods majors would set up exclusive outlets in India, which would be managed and owned entirely by them.
Swedish furniture major IKEA, which had earlier announced that it would invest about €1.5 billion (Rs 10,500 crore) in India, is insisting that India should tweak a clause that will require it to source the mandatory 30% from medium and small enterprises in India.
First Published: Aug 13, 2012 21:23 IST