New Delhi: Reebok India has submitted a proposal to the Department of Industrial Policy and Promotion (DIPP), seeking Government of India's approval to open single brand retail stores in India. The company has applied through the '100 per cent foreign direct investment (FDI) in single brand retailing' route. Under this policy, 49 per cent FDI is allowed via the automatic route; however, beyond that limit, the company needs the government's approval. The investment is permitted only if the products are of a single brand and are sold under the same brand all over the world. Also, if the FDI proposal is for more than 51 per cent, it is compulsory for the company to source 30 per cent of the value of goods bought from India, preferably micro, small and medium enterprises (MSMEs). Currently, Germany-based Adidas AG sells both Adidas and Reebok sports shoes and clothes across India.
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