The government gave permission to British footwear retailer Pavers England, US-based clothing company Brooks Brothers and Italian jeweller brand Damiani to set up stores in India under the single brand retail policy. The Foreign Investment Promotion Board (FIPB) also allowed construction and engineering major Larsen & Toubro to induct foreign investment in its defence production venture.
The three retail ventures are expected to bring in FDI worth over Rs. 106 crore. Pavers’ intends to set up 100% -owned subsidiary and is the first company to apply and receive nod under the new regime for single-brand retail sector that permits foreign direct investment upto 100% in a retail venture but with conditions such as mandatory 30% domestic sourcing from India. The FIPB has allowed Brooks Brothers to invest . 6.22 crore in its recently announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries, and Italy’s Damiani to set up a 51:49 joint venture with Mehta's.
At present, Pavers sells products through its Chennai-based master franchisee Triton Retail in 28 exclusive stores across India and also through retail outlets of Reliance Footprint, Lifestyle, Shoppers Stop and Westside.
The government had revamped its single-brand retail policy in September making it easier for foreign retailers to comply with domestic sourcing norms. Pavers was the first to apply after the government in January notified its decision to raise FDI limit in singlebrand retail from 51% to 100%. But, the proposal was delayed as earlier norms allowed only the brand owner to set up shop in India.
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