Decathlon Allowed To Start Retail Chain in India
NEW DELHI, India – The world’s biggest retailer in sporting goods (including bikes) is investing USD130m in opening up a retail chain in India. The country’s Foreign Investment Promotion Board (FIPB) cleared the proposal of Decathlon Sports recently. Decathlon takes this step as changes in legislation now makes it possible for foreign companies to wholly own Indian subsidiaries.
Decathlon is already present in India as a cash-and-carry/wholesale operator. The sporting goods giant has written to the Indian government proposing to open a chain of retail stores, similar to the 20 other countries that it conducts business in.
Foreign direct investment (FDI) cap
Decathlon is the first international player that aims to go in regular retail in India. Single-brand retail, which till a year ago had foreign direct investment (FDI) cap of 51%, can now be fully foreign-owned, thereby encouraging international chains to foray into India. In multi-brand retail, 51 per cent FDI was allowed recently. So far, many international retail chains operated only in the cash-and-carry category, as it did not impose any FDI limit on companies.