Two companies, including fashion chain Benetton Group, have sought approval of the Government to enter India through the FDI in single-brand retail route.
According to a PTI report: The Benetton Group sells apparel under the brand name of United Colors of Benetton.
Benetton India Pvt. Ltd has sought approval to undertake e-commerce and retail trading of imported goods, according to the department of industrial policy and promotion (DIPP).
Karnataka-based Actoserba Active Wholesale Pvt. Ltd wants to undertake single-brand retail trading and e-commerce of Zivame branded lingerie products. Two foreign individuals—Katarzyna Dmoch and Rami Shinnawie—have also sought nod from the Government to set up a 100 per cent foreign-owned Indian retail arm of Caracole Interior Designs, Qatar.
Currently, foreign direct investment (FDI) up to 49 per cent is permitted under the automatic route but beyond that limit, Government’s nod is required. 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 MSMEs. To attract more FDI in retail sector, Government is considering allowing 100 per cent foreign investment through automatic route in single-brand retail to attract a larger number of global players in the sector.