FDI IN SINGLE BRAND RETAIL
FDI IN SINGLE BRAND RETAIL
FDI IN SINGLE-BRAND RETAIL OF INDIA
- 100% FDI in single-brand retail.
- The market accounts for 6% of India’s consumption expenditure and is expected to touch $225 billion (around Rs.14 trillion today) by 2020.
EXPECTED GROWTH OF RETAIL OF INDIA
STRICT CONDITIONS OF FDI IN SINGLE-BRAND RETAIL
- Retailers should buy 30 percent of the value of their products from small Indian businesses and individuals that have invested less than $1 million in factories or equipment.
- Investors wishing to hold 100 percent of single-brand stores must own the brands that their stores sell.
COMPANIES INVESTING IN SINGLE-BRAND RETAIL OF INDIA
- HENNES & MAURITZ(H&M)
- FOREVER LIVING
- Swedish furniture major will invest Rs 10,500 crore.
- Setting up 10 furnishing and homeware stores as well as allied infrastructure in 10 years.
- It plans to open 15 more stores.
- Also it has been allowed to run cafes and restaurants within its single brand stores.
- Can sell food and beverages at its restaurants/cafes but it cannot sell packed food items.
- Swedish clothing giant Hennes & Mauritz AB (H&M).
- Approval of the Foreign Investment Promotion Board (FIPB) to invest about Rs 720 crore.
- Will Open 50 shops in the country in the next few years
- The company is based in Denmark and it operates 3,000 stores in Europe, West Asia & India with 11 brands.
- It will invest Rs.210 crore into its three brands in the country:
Jack and Jones
- It has also acquired 100% equity in Best United India Comforts Pvt. Ltd
- It will make investment of $5 million for acquisition of equity shares from existing shareholders as well as for setting up single-brand retail stores in the initial stages.
- Operates a total of 500 points of sales with the Mumbai-based textile company Bombay Rayon Fashion Ltd.
- The company is a Dubai-based global duty-free and travel retail operator that first opened its shop in the country in 2003.
- Flemingo International’s Rs.190 crore proposal to set up a fully owned subsidiary.
- 49% investment in an Indian duty-free company was approved by FIPB.
- Forever Living Products International, Inc. (FLPI) is a USA based multilevel marketing company.
- Rs 18.30 crore proposal to undertake single brand retailing of ‘Forever’ brand products in India has also been approved by the board.
- Manufactures and sells dozens of wellness and beauty products.
- Puma entered India in 2005.
- Puma had proposed to bring in 10.1-crore ($1.66-million) FDI.
- Currently has 340 stores, of which about 230 are owned by smaller franchises and the rest by Knowledge Fire.
- The company plans to invest about 1.5 crores for each new store it plans to open measuring about 2,000 sqft.
- Will push footwear market from the current 40 percent to 60 percent Made in India products.
- The company entered India about two decades ago.
- Currently, operates through around 400 franchised stores in the country.
- Nike now plans to open its own flagship stores.