FIPB may take up 4 single brand retail proposals on Feb 13
New Delhi: The Foreign Investment Promotion Board (FIPB) is likely to take up four proposals of global brands, including Decathlon and Fossil Inc, worth over Rs 750 crore for setting up single-brand retail stores in India during its next meeting scheduled on February 13.
"The FIPB, in its next meeting, is likely to take up proposals of French fashion brand Promod, France-based crockery maker Le Creuset, US-based accessories firm Fossil Inc and French Sports giant Decathlon, to open retail stores, under the single-brand retail policy," sources said.
Last week, the Department of Industrial Policy and Promotion (DIPP) has sent the four proposals to the Board for its consideration, they added.
In January 2012, India raised the FDI cap in single-brand retail to 100 percent from 51 percent.
Except Promod, other three brands (Le Creuset, Fossil Inc and Decathlon) have proposed to invest in 100 percent single brand retail venture.
"Among these 4 proposals, Decathlon has planned maximum investment of Rs 700 crore," sources said.
Promod, which plans to invest about Rs 30 crore, has proposed to form a joint venture with 51 percent stake.
In the case of American high-end accessories firm Fossil Inc, it has proposed to invest more than Rs 22 crore.
Crockery maker Le Creuset operates a cash-and-carry business in India.
"It may not bring in fresh investment and rather get funding from its existing wholesale operations," sources said.
They also said another four applications of premium apparel-maker Tommy Hilfiger, European brand Na Pali, American shoe-maker Skechers and Thailand-based Lotus Arts for setting up their single-brand retail stores in India are pending with the DIPP.
"The department is processing these applications and it would take some time to send it to the FIPB for its consideration," they said.
Among the applications which are under-process, only Lotus Arts is keen on setting up a 100 percent venture.
While Skechers and Na Pali plan to have an equity participation of 51 percent, respectively, Tommy Hilfiger proposes to have a 50 percent equity stake, sources said.
Recently, the FIPB cleared a number of single-brand FDI proposals including Swedish furniture-maker IKEA, British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers and Italian jewellery maker Damiani.