MUMBAI: The Indian government has approved Reebok India's proposal to set up single brand retail stores in the country.
The wholly owned adidas subsidiary received the official nod to set up single brand retail stores from the Department of Industrial Policy and Promotion (DIPP) on Tuesday.
Till now, Germany's Adidas AG has been sellling adidas and Reebok products in India.
"The proposal to undertake single-brand retail trading of Reebok branded products in India has been approved. It entails foreign direct investment (FDI) inflows of Rs20 crore (Rs200 million)," official sources told PTI.
India's foreign direct investment (FDI) policy allows 100 per cent equity investment in single brand retail trading. FDI of up to 49 per cent is permitted under the automatic route but government's nod is required beyond that limit.
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.
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 from micro, small and medium enterprises.
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