DIPP clears Reebok’s proposal to set up retail stores in India

By: |
New Delhi | Published: October 24, 2017 9:15:36 PM

The Department of Industrial Policy and Promotion today approved Reebok India's proposal to set up single brand retail stores in the country.

dipp, dipp reebok row, reebok retail stores in india, reebok stores in india, reebook store proposalFDI of up to 49 per cent is permitted under the automatic route but government’s nod is required beyond that limit. (Reuters)

The Department of Industrial Policy and Promotion today approved Reebok India’s proposal to set up single brand retail stores in the country. “The proposal to undertake single-brand retail trading of Reebok branded products in India has been approved. It entails foreign direct investment (FDI) inflows of Rs 20 crore,” official sources said. Reebok India had sought government’s nod to set up single brand retail stores in the country. The company had submitted its proposal to the Department of Industrial Policy and Promotion (DIPP). At present, Germany’s Adidas AG sells Adidas and Reebok sports shoes and clothes in India. As per the foreign direct investment (FDI) 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.

Furthermore, 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 micro small & medium enterprises.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Google delays white Pixel 2 orders by a month
2Amazon gets 238 proposals for second headquarters
3SBI’s profit, capital hinge on NPA resolution, says Moody’s