New Delhi, June 7 (KNN) The sports brand Reebok has approached the government seeking permission to set up single brand retail stores in the country.

Since the company has approached the government, it suggests that there can be investments beyond the 49 per cent limit which would mean that the company will have to comply with certain norms including the mandatory sourcing of 30 per cent of the value goods from the Micro, Medium and Small Enterprises (MSMEs)

The Company in a proposal to the Department of Industrial Policy and Promotion (DIPP) has sought permission to set up the single brand retail stores, as of now Reebok in India is sold by Germany based Adidas AG.

An official at the DIPP in a press interview informed that the department has received the proposal and is looking into it, an official confirmation is not yet communicated.

As per the norms, 100 per cent equity investment is allowed in single brand retail. FDI of 49 per cent and below are allowed though the automatic route, whereas an investment beyond that needs government approval.

Also in investments that involve FDI of more than 51 per cent, it is mandatory to source at least 30 per cent of the value goods from MSMEs in the country.

Last month fashion chain Benetton Group, Actroserba Active Wholesale Pvt. Ltd, Katarzyna Dmoch and Rami Shinnawie reached out to the government seeking green signal to set up a 100 per cent foreign owned retail firms in the country. (KNN/ DA)