Several single brand FDI proposals stuck with DIPP
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Delays hold up brand's India retail expansion
It's been 18 months since US apparel company Tommy Hilfiger filed an application to form a 50:50 joint venture with Arvind, to open 500 points of sale over next 5 years. A joint venture proposal filed by Italian bag and shoe retailer Furla has been lying with DIPP for more than seven months. Furla has sought approval for a 51:49 joint venture with Genesis Luxury, which currently runs two Furla stores as a franchisee. The proposed joint venture has applied to sign up franchisees apart from having fully owned stores. While Swarovski and Innisfree have applied to start wholly owned subsidiaries in India, Officina wants to launch a JV with New Delhi-based businessman Arjun Khurana.
According to the applicants, having a combined business model makes sense when they want to open stores in smaller towns along with metros. Even a July report by KPMG said imposing such conditions on supermarket chains was a "big blow to growth in retail franchising in India".