UK’s Pavers approaches govt for licence in single brand retail

government had in January increased the FDI cap in single brand retail to 100 per cent,paving way for global brands and retailers to have full ownership of their Indian operations.

Chandra did not provide further details of the proposal,but said many more international retail brands are expected to come up with similar proposals.

It is understood that Pavers plans to invest about USD 20 million (around Rs 100 crore) in the country.

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,it is believed,has no issue with the 30 per cent mandatory sourcing clause for 100 per cent FDI in single brand retail as it is already buying from India.

For FDI beyond 51 per cent,the retailer will have to source at least 30 per cent of its requirements from domestic small and cottage industries which have a maximum investment in plant and machinery of USD 1 million (about Rs 5 crore).

Established in 1971,Pavers retails products at more than 100 outlets worldwide.

Pavers had formed a joint venture with London-based Foresight Group to tap growth opportunities in India.

In 2010,Pavers had said it planned to 100 stores in India in five years. In 2011,the company announced an investment of USD 15 million (nearly Rs 70 crore) to expand presence in the Indian market.

On the proposal to allow foreign airlines to pick up stake in domestic carriers,Chandra said that the matters is under consideration.

“The decision has to be taken by the cabinet. Process of consultation is on…we hope to get it soon,” he said,adding that consultation on multi-brand retail is also on.

Further,he said that there is a “status quo” on FDI in defence. He was talking to reporters at a Ficci function on intellectual property policy.