BENETTON APPLIES FOR FDI IN SINGLE BRAND RETAIL
NEW DELHI: 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.