Sportswear firm Nike has applied for permission to open company-owned stores to retail its products in the country, a government notification said.
As per the Department of Industrial Production and Promotion (DIPP) website’s notification, on August 29, Nike applied for 100 per cent FDI in single brand retail.
The application has been made by Nike to retail its products, including footwear, apparel, equipments and related accessories in India, notification added.
However, when contacted 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 and 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 is allowed, are to be “preferably” sourced from small and medium enterprises (SMEs).