Reebok seeks govt nod to open single brand retail stores in India
Reebok has submitted its proposal to DIPP to set up stores through the ‘100% FDI in single brand retail’ route
New Delhi: Reebok India has sought government’s nod to set up single brand retail stores in the country. The company has submitted its proposal to the Department of Industrial Policy and Promotion (DIPP). “The DIPP is looking at the application,” an official said.
At present, Germany’s Adidas AG sells Adidas and Reebok sports shoes and clothes in India.
An email to Reebok in this regard did not elicit any response.
As per the foreign direct investment (FDI) policy, 100% equity investment is allowed in single brand retail trading. FDI of up to 49% is permitted under the automatic route but government’s nod is required beyond that limit.
Foreign investment is allowed subject to certain conditions, which require products to be of a ‘single brand’ only and to be sold under the same brand globally. Furthermore, in respect of proposals involving FDI beyond 51%, it is mandatory to source 30% of the value of goods purchased from India, preferably micro small & medium enterprises.