India approves FDI proposals of 4 single-brand retailers

India's Foreign Investment Promotion Board (FIPB) has given its nod to foreign direct investment (FDI) proposals of four single-brand retailers – three from France and one from the US.

The proposal of sportswear and sports equipment retail giant Decathlon is for bringing in FDI of about Rs. 7 billion. The French brand is already present in India's wholesale space, and it now plans to enter the retail segment.

French womenswear brand Promod’s proposal is for setting up a 51:49 joint venture with an Indian firm Major Brands, with an initial investment of around Rs. 0.30 billion.

The proposal of Fossil Inc, the US-based global lifestyle company specializing in consumer fashion accessories, is for investing Rs. 0.22 billion.

Le Creuset, France-based manufacturer of cookware and kitchen textiles, has not announced any investment plan but is likely to rejig its existing wholesale operations in India.

Single-brand retail market in India is estimated to be around Rs. 350 billion, a fraction of the huge Rs. 25000 billion Indian retail market, most of which is unorganized.

Since the Indian Government raised the FDI limit in single-brand retail from the earlier 51 percent to 100 percent in January last year, the FIPB has approved proposals of American clothing firm Brooks Brothers, Swedish furniture giant IKEA, and 2 other companies.

However, IKEA’s proposal still awaits the nod of the Cabinet Committee on Economic Affairs (CCEA), as it plans to invest Rs. 105 billion, much more than the upper limit of Rs. 12 billion for considering the FIPB’s as final.