The Department of Industrial Policy and Promotion today approved Reebok India's proposal to set up single brand retail stores in the country.
"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 Rs 20 crore," official sources said.
Reebok India had sought government's nod to set up single brand retail stores in the country. The company had submitted its proposal to the Department of Industrial Policy and Promotion (DIPP).
At present, Germany's Adidas AG sells Adidas and Reebok sports shoes and clothes in India.
As per the foreign direct investment (FDI) policy, 100 per cent equity investment is allowed 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.
"We are working on giving boost to FDI inflow in India, speeding up approvals, creating enabling ecosystem," Commerce Minister Suresh Prabhu said in a tweet.
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.
Furthermore, 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 micro small & medium enterprises.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)