Reebok India, the indian subsidiary of one of the biggest apparel companies of the world, has requested for government’s approval to operate single-brand retail stores in India. The request was made through a proposal sent to DIPP (Department of Industrial Policy and Promotion) recently.
According to an official from DIPP, who spoke on the condition of anonymity, the department has received the proposal and is evaluating the same. The response will be forwarded to the company in the coming weeks.
Currently, Adidas AG, the Germany based company looks after the sale of Reebok’s sport shoes, clothing and other apparels in India.
According to the FDI policy of Indian Government, if a brand looks to raise over 49% of its funds through FDI, it needs the approval from the government. Under single brand retailing, there needs to be 100% equity investment and a government’s approval is needed before the companies can get started with the same.
An email sent to Reebok about the development did not receive a response.