Footwear and accessories company Pavers England has applied for single brand retail licence to start its operations in India under the newly-allowed policy of 100 per cent foreign direct investment (FDI) in single brand retail.
The newly appointed Secretary of Department of Industrial Policy and Promotion (DIPP), Surabh Chandra, told journalists on the sidelines of a function organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) that the Government had received a proposal from Pavers for 100 per cent FDI to set up its own shop.
Officials in the DIPP said that Pavers planned to invest about $20 million in the first phase.
At present, the firm sells products through its Chennai-based master franchisee Trident Retail in 23 exclusive stores, and also through Reliance Footprint and Lifestyle outlets. The company is also understood to have conveyed its readiness to follow the 30 per cent mandatory sourcing clause within the country, as it is already sourcing a lot of raw material from small Indian entities.
Under the rules, for FDI beyond 51 per cent, the retailer will have to source at least 30 per cent of its requirements from the domestic small and cottage industries which have a maximum investment in plant and machinery of $1 million.