New brands join retail ranks

Anandita Singh Mankotia
Posted: Tuesday, Oct 23, 2007 at 0000 hrs IST
Updated: Tuesday, Oct 23, 2007 at 0002 hrs IST

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New Delhi, Oct 22:

Crocs to step into the country in style

Colorado-based high-end footwear retailer Crocs Inc is setting up shop in India. The $400-million company plans to open 50 retail outlets across the country under the single-brand retail format, where government regulations allow 51% FDI. Crocs has already filed an application with FIPB.

Crocs, which manufactures and retails niche footwear, is a rage across the US where it operates over 5,000 stores. The company is present in 80 countries worldwide.

In India, Crocs plans to invest $1 million to set up 50 stores in the first year of operations. The company would hold 51% equity in the Indian venture through its wholly owned subsidiary, Crocs Asia, with the remainder held by the domestic partner.

Company sources said that sourcing from India would be high on Crocs’ agenda once its manufacturing facilities are in place. The company, which is known for its colourful footwear, will also produce a specific range just for India. Crocs has been present in India through Crocs India Pvt Ltd, a wholesale trader of branded footwear and accessories, since March this year.

Because of the 51% FDI cap, several international apparel majors like Zarra and GAP have been reluctant to enter the Indian market, as they prefer 100% control over their operations. Between January 2006 and May this year, only 17 projects entailing an investment of $3.1 million have been approved by the government under the single-brand route, mostly in fashion and related accessories.

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