BENETTON APPLIES FOR FDI IN SINGLE BRAND RETAIL

Two companies, including fashion chain Benetton India Pvt. Ltd have sought approval of the government for single brand retail trading in India.

Benetton India 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% foreign-owned Indian retail arm of Caracole Interior Designs, Qatar.

Currently, foreign direct investment of up to 49% 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%, it is mandatory to source 30% of the value of goods purchased from India, preferably MSMEs or micro, small and medium enterprises .

To attract more foreign direct investment in the sector, the government is considering allowing 100% foreign investment through automatic route in single brand retail to attract a larger number of global players in the sector.