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FDI IN SINGLE BRAND RETAIL

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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

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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

  • IKEA
  • HENNES & MAURITZ(H&M)
  • BESTSELLER
  • FLEMINGO
  • FOREVER LIVING
  • PUMA
  • NIKE

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  • 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.

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  • 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

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  • 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

   Vero Moda

   Only

  • 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.

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  • 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.

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  • 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.

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  • 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.

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NIKE Inc.

  • 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.

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