Pavers England allowed to open wholly-owned stores in India

Pavers England allowed to open wholly-owned stores in India

The UK-based Pavers England on Friday became the first foreign retailer to be allowed to set up wholly-owned stores in India, with the government clearing a $20 million investment proposal from the footwear company.

The application was approved by India’s Foreign Investment Promotion Board Friday, according to Economic Affairs Secretary Arvind Mayaram.

At present the firm sells products through its Chennai-based master franchisee Trident Retail in 23 exclusive stores across India and also through Reliance Footprint and Lifestyle retail outlets.

The move comes after New Delhi last year allowed 100 per cent foreign ownership in the single-brand retail sector, wherein a company sells only its own brand of goods. Earlier, such foreign companies could own only up to 51 per cent of their Indian operations.

Earlier regime

Under the earlier regime of up to 51 per cent FDI, India had managed to attract only about Rs 200 crore worth of investment in the past three-and-a-half years in the segment.

Damiani India is seeking permission for single-brand retail business in collaboration with Damiani International, as per the FIPB. Recently, Damiani opened its first outlet in New Delhi. According to sources, the FIPB accepted US clothing retailer Brooks Brothers proposal.

In June, Reliance Brands, a unit of Reliance Industries, had announced a joint venture with Brooks Brothers to set up the latter's shops in India. Brooks Brothers will have 51 per cent stake in the joint venture.

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.