Govt.'s nod sought by Reebok to open single brand retail stores

Govt.’s nod sought by Reebok to open single Adidas AG brand retail stores

Reebok India has sought government’s nod to set up single brand retail stores in the country and it has submitted its proposal to the Department of Industrial Policy and Promotion (DIPP), which 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 policy, 100 per cent equity investment is allowed in single brand retail trading. FDI of up to 49 per cent 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.

Beside, in respect of proposals involving FDI beyond 51 per cent, it is mandatory to source 30 per cent of the value of goods purchased from India, preferably MSMEs.

–¬†Apparel and Textile News, Apparel Talk, Indian Apparel