LeEco seeks exemption from sourcing norms for retail stores

CHINESE handset maker LeEco has requested the government to relax mandatory sourcing norms for the company as it looks to ramp up its retail presence in the country.

LeEco, which entered the IndianmarketinJanuarythis year, had filed an application with the Foreign Investment Promotion Board (FIPB), seeking approval for opening singlebrandretailshopsinIndia.

At present, 100% FDI is permitted in the sector but beyond 49%, FIPB per mission is required.

“We have also asked the government to give us an exemption on it, on the 30% (local sourcing) norm. We haven’t heard from them as issue with the Finance Ministry.

For single-brand product retail trading, that involve FDI beyond 51%, sourcing of 30 per cent of the value of goods purchased has been mandated from the country. However, government last year said that it may relax the sourcing norms if any company’s products are state-ofthe-art and cutting-edge technology.

Asked if LeEco will manufacture its devices in India, Jain answered in the affirmative.

“We are at a very advanced stage of doing it and I think in the next 2-3 months, we will be in a position to make a formal announcement. We are looking at both third-party and greenfield ventures,” he said.

The company already has