MUMBAI, Aug 13 (Reuters) - India has received six proposals
from global single-brand retailers seeking permission to own 51
percent of their operations in the country, the commerce
ministry said on Monday.
Retailers who have applied to the government include apparel
maker Tommy Hillfiger, clothing retailer Brooks
Brother Group, Italian jewellery brand Damiani International,
French fashion brand Promod SAS, Fapa Company Ltd and NA Pali
Europe SARL, which is a unit of sportwear retailer Quiksilver
Many of these retailers are already present in India via
licensing and joint-venture partnerships with Indian retailers.
The government has not taken a decision on these proposals,
the ministry said in a statement.
Recently an application by Zara owner Inditex S.A.
to sell a more upscale brand through a joint venture with Tata
Group's retail arm, Trent Ltd, was rejected by the
Foreign Investment Promotion Board (FIPB).
In January, India allowed foreign single-brand retailers to
set up wholly owned operations in India, but a requirement that
companies source 30 percent from small local firms has
discouraged retailers from applying for full ownership.
Only Ikea and Pavers, a British shoe chain, have
applied so far hoping to bank in on rising middle-class incomes
and an expanding appetite for global brands and lifestyles.
The statement said no decision has been taken on modifying
the sourcing norms, a widely expected move from the government
as it struggles to attract overseas investors in the sector.