Decks have been cleared for UK-based footwear chain Pavers England Ltd to set up its wholly-owned retail chain in India.
The Foreign Investment Promotion Board (FIPB), the nodal agency for FDI approvals, has cleared Pavers’ proposal, making it the first 100 per cent FDI proposal in single-brand retail to be cleared under the new policy.
The proposals were cleared by FIPB, headed by Economic Affairs Secretary Arvind Mayaram.
Pavers England plans to invest $20 million in the Indian venture. The company currently sells footwear in India through a franchisee agreement.
Pavers Foresight Smart Venture Mauritius, a $60-million equal joint venture between the UK-based Pavers and Foresight group, had applied in January to invest $20 million in Pavers England, the Indian company retailing footwear, through a master franchise.
Pavers England had said it has been sourcing almost 40 per cent of its brand requirements from India and the rest from Vietnam, Italy and China.
Other approvals
The other brands that got FIPB nod include clothing retailer Brooks Brothers’ proposal and another by Italian jewellery brand Damiani to set up a 51:49 joint venture with Mehta’s Pvt Ltd.
The master franchisee for Pavers England is Triton Retail. Pavers will invest in Triton or may acquire 100 per cent and take over the retail operations once it gets the go-ahead from the Government.