Finance Ministry to take up four FDI proposals today
Posted on: 03:40 AM IST Feb 13, 2013
New Delhi: The Finance Ministry on Wednesday will consider four FDI proposals in single brand retailing, including that of Decathlon and Fossil Inc, worth Rs 750 crore. Proposals of French fashion brand Promod, crockery maker Le Creuset and sports giant Decathlon along with that of US-based accessories firm Fossil Inc are listed on the agenda of Wednesday's Foreign Investment Promotion Board (FIPB) meeting, an official said.
The FIPB is headed by Economic Affairs Secretary Arvind Mayaram. Last month, the Department of Industrial Policy and Promotion (DIPP) of Ministry of Commerce and Industry had sent these proposals to the FIPB for consideration. India is witnessing an increased interest in the retailing segment, ever since the government allowed 100 per cent FDI in single brand retail in January 2012.
Le Creuset, Fossil Inc, and Decathlon are seeking FIPB's nod for 100 per cent FDI, while Promod proposal is for entering the segment in a joint venture. A DIPP official said that Decathlon alone proposes to bring in foreign equity worth Rs 700 crore.
While Promod proposed to bring in FDI worth about Rs 30 crore, the American high-end accessories firm Fossil Inc plans over Rs 22 crore investment. However, Crockery maker Le Creuset, which already operates a cash-and-carry business in India, may not bring in fresh investment but rather get funding from its existing wholesale operations, the official added.
In recent past, the FIPB has cleared several major single brand retail proposals including that of Swedish furniture-maker IKEA, British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers and Italian jewellery maker Damiani.