FIPB to take up Celio, Villeroy & Bochs FDI proposals on April 10

Written by Kirtika Suneja | New Delhi | Updated: Apr 8 2013, 05:42am hrs
The foreign investment promotion board (FIPB) will consider the single-brand investment proposals of Germany-headquartered ceramics major Villeroy & Boch and French men's apparel company Celio on April 10.

Celio, which has a 50:50 joint venture with Indian retail giant Future Group, had earlier filed an application to increase its stake in the venture by up to 100%. It currently has 30 standalone stores and is present through 97 shop-in-shop formats across the country.Globally, it has 1,000 stores in 70 countries and sells 35 million items every year.

On the other hand, Villeroy & Boch -- which entered India in 2008 -- is represented in 125 countries and has 15 production facilities in Europe, Mexico and Thailand. It clocked revenues of 743.6 million in 2012.

Though the investment proposals by these companies is less than Ikea, it is a healthy sign for the organised retail sector here, said a senior department of industrial policy and promotion (DIPP) official.

Ever since it allowed 100% FDI in single-brand retail in January last year, thegovernmenthas cleared 63 proposals in the sector -- the largest coming from Swedish furniture maker Ikea which plans to invest R10,500 crore in the country.

Besides, in the recent past, theFIPBhas cleared several major single-brand retail proposals, including that of British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers and Italian jewellery maker Damiani.

In February, the finance ministry cleared four FDI proposals in single-brand retailing, including that ofDecathlonandFossil, worth about R750 crore.The proposal of Le Creuset, Fossil and Decathlon were for 100% FDI, whilePromodsought entering the segment through a joint venture.

Decathlon alone would bring in foreign equity worth R700 crore.