Nike seeks FIPB nod for own stores under 100% FDI norm
02 Sep 2014
Nike, the US-based sportswear maker with the famous 'swoosh' logo, has applied for permission to open company-owned retail stores to sell its products in the country, a government notification said.
As per the notification put up on the website of the Department of Industrial Production and Promotion (DIPP), on 29 August, Nike applied under the 100 per cent FDI in single brand retail rules.
The application has been made by Nike to retail its products, including footwear, apparel, equipment and related accessories in India, notification added.
When contacted, a Nike spokesperson said, "Nike welcomes the government's decision on foreign direct investment in single-brand retail in India. Nike currently operates its business here through local distributors and retail partners. This model works well for us but we may consider exploring opening Nike-owned stores in the future."
Currently, Nike has over 400 franchised stores in the country.
In January 2012, the previous UPA government raised the FDI cap in single-brand retail to 100 per cent from 51 per cent. As per the current policy, 30 per cent of products sold by single brand retailers where 100 per FDI has been allowed, are to be "preferably" sourced from small and medium enterprises (SMEs).
