Pavers England gets FIPB nod to set up shop in India

The Foreign Investment Promotion Board has cleared Pavers England’s proposal to invest in single-brand retail chain in India_, CNBC TV18_ reported today.

Earlier, CNBC TV18 has reported that the proposal has been put forth by Pavers Foresight Smart Ventures, Mauritius.

According to a report in the Economic Times, the approval for Pavers was held back due to confusion over ownership of the brand.

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The application to invest here was made by Pavers Foresight Smart Ventures, a $60-million joint venture between Pavers and the Foresight Group based in Mauritius, the report said.

The proposal has been cleared by FIPB after the company clarified that it is the whole and sole owner of the Pavers brand.

Pavers Foresight Smart Ventures wants to bring in about $20 million for a wholly owned subsidiary.

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Its aim is to increase its footprint in the Indian market through the wholly-owned subsidiary route. Currently, it is present here through the franchise model.

According to the ET report, Pavers is the first foreign retailer to seek approval for investment in India after the government in January notified its decision to raise the foreign direct investment limit in single-brand retail from 51 percent to 100 percent.

The approval for Pavers comes even as Ikea, the Swedish furniture giant, is waiting for the government’s approval.

Ikea’s proposal is to invest 1.5 billion euros in India.

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To make investing in single-brand retail easier for foreign companies, the government had amended its policy earlier this month.

Ikea has filed its final documents with the government. The company had been negotiating with the government over the norm to source 30 percent of its turnover from domestic companies.