The Foreign Investment Promotion Board (FIPB), on Friday, gave a green signal to foreign direct investment (FDI) worth Rs.106 in the single brand retail sector clearing three proposals, including that of America’s oldest clothing retailer Brooks Brothers and U.K.’s footwear chain Pavers England.
In addition, the FDI proposal by Italian jewellery brand Damiani to set up a 51:49 joint venture with Mehta’s Pvt. Ltd. got the nod. The proposals were cleared by the FIPB headed by Economic Affairs Secretary Arvind Mayaram. The Pavers England proposal states the company has plans to invest Rs.100 crore.
At present, the U.K.-based firm sells products through its Chennai-based master franchisee Triton Retail in 28 exclusive stores across India, and also through retail outlets of Reliance Footprint, Lifestyle, Shoppers Stop and Westside.
The Brooks Brothers has been given permission to invest Rs.6.22 crore in its recently-announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries Limited.
Brooks Brothers introduced the first ready-to-wear suits in 1845. Its flagship store is at Madison Avenue, New York City, a location it has held for almost a hundred years. Damiani India’s proposal is to bring in FDI worth Rs.35.7 lakh.
Ever since the government liberalised the foreign direct investment policy to allow 100 per cent FDI in single-brand retail in January, a large number of global retailers have expressed interest to set up stores in India. Under the earlier regime of up to 51 per cent FDI, the country had managed to attract only about Rs.200 crore worth of investment in the past three-and-a-half years in the segment.
