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Govt approves 63 proposals for single brand retail FDI

PTI 14 Aug 2012, 21:16:30 PM IST
New Delhi, Aug 14: The government has approved 63 proposals of foreign companies, including Louis Vuitton and Marks and Spencer, for retailing in single brand in the country so far.

Various foreign brands are functioning in the retail market for the past few years, Consumer Affairs Minister K V Thomas said in a written reply to the Lok Sabha.

The single brand labels which plan to strengthen include Dolce and Gabbana, Christian Dior Couture, Marks and Spencer, Louis Vuitton and Hermes International have been approved under the single-brand retail trade.

In January this year, India hiked the foreign direct investment (FDI) cap in single-brand retail to 100 per cent from 51 per cent.

"In single-brand product retailing, foreign investment up to 100 per cent is permitted with prior government approval and subject to specified conditions," Thomas said.

Yesterday, the government had also said it had received six proposals from foreign brands like Tommy Hilfiger, Promod and Damiani, for single-brand retail trading with up to 51 per cent foreign equity participation.

Besides, the two proposals - Pavers England and IKEA Group - had been received for 100 per cent FDI in single-brand retail, Commerce and Industry Minister Anand Sharma had said. No decision had been taken on these proposals, he had added.

"... Six proposals (from Fapa Company, Samoa; Promod SAS, France; Tommy Hilfiger, The Netherlands; NA Pali Europe SARL; Brooks Brother Group, USA and Damiani International, The Netherlands), have been received for single-brand retail trading with up to 51 per cent foreign equity participation," he said.

Till May, the total FDI equity inflows in the single brand retail trade were meager Rs 204.07 crore.