Pavers in favour of 30% local sourcing

British footwear company Pavers England, which has

complied with the Indian government’s condition to operate a single-brand retail chain with 100 per cent foreign investment is also in favour of the 30 per cent local sourcing norm. It already fulfils the FDI condition of mandatory 30 per cent sourcing from India.

The proposal to dilute the 30 per cent mandatory sourcing from SMEs clause is currently being reviewed by the commerce and industry ministry after a demand from Swedish furniture maker IKEA. But Pavers feels that if the 30 per cent sourcing clause is removed, it would adversely impact employment opportunities in India. It in fact, suggests that the percentage should be increased.

Pavers England procures a majority of its footwear from its manufacturing and design facility near Chennai. The premium shoe company, with around 100 stores in the UK and Ireland, has registered its intellectual property again, by transferring it to Foresight to comply with local rules that require a firm applying for a venture with 100 per cent overseas investment to be the owner of the brand that also includes its trademark.

Though Pavers entered the Indian market in 2007 through Mauritius-based Pavers Foresight Smart Ventures, its $60 million (around Rs 330 crores) 50:50 joint venture with the Foresight Group UK, the Pavers brand was registered under and owned by Pavers England in India. In India, Pavers has 25 exclusive stores operating through a master franchisee and 65 concession stores.