The Government said today that footwear and accessories player Pavers England has applied for single brand retail licence to operate on its own in India.
“There is one proposal — Pavers India,” the Department of Industrial Policy and Promotion (DIPP) Secretary, Mr Saurabh Chandra, said when asked whether the Ministry has received any proposal for single brand retail store.
The Government had in January increased the FDI cap in single brand retail to 100 per cent, paving way for global brands and retailers to have full ownership of their Indian operations.
Mr Chandra did not provide further details of the proposal, but said many more international retail brands are expected to come up with similar proposals.
It is understood that Pavers plans to invest about $20 million (around Rs 100 crore) in the country.
The firm sells products through its Chennai-based master franchisee Trident Retail in 23 exclusive stores, and also through Reliance Footprint and Lifestyle outlets.
Mandatory sourcing clause
The company, it is believed, has no issue with the 30 per cent mandatory sourcing clause for 100 per cent FDI in single brand retail as it is already buying from India.
For FDI beyond 51 per cent, the retailer will have to source at least 30 per cent of its requirements from domestic small and cottage industries which have a maximum investment in plant and machinery of $1 million (about Rs 5 crore).
Established in 1971, Pavers retails products at more than 100 outlets worldwide. The company had formed a joint venture with London-based Foresight Group to tap the growth opportunities in India.