French sports goods retailer Decathlon will soon start its retail chain in India for which it has planned an investment of $130 million after having received clearance for its proposal from the Indian Foreign Investment Promotion Board (FIPB).
Already present in India in the capacity of a cash-and-carry/wholesale operator, the sports retailer now seeks to expand its presence as a retail chain post the legislation that allows foreign companies to wholly own Indian subsidiaries.
A 51% foreign direct investment (FDI) cap was applicable on single-brand retail till last year that can now be fully foreign-owned, encouraging international chains to foray into India. Additionally, 51% FDI has been allowed in multi-brand retail recently. Capitalising on this legislation, Decathlon will be among the first few international players that will start dabbling in regular retail in India.