Nike seeks to set up fully owned India unit

NEW DELHI: American sportswear firm Nike has sought approval to invest in a wholly-owned subsidiary in India to sell its own brand of products. Nike India has filed the application with the Department of Industrial Policy and Promotion on August 29, the department’s website showed. Nike entered India about two decades ago and currently operates through around 400 franchised stores in the country.

According to the filling, it now plans to open its own flagship stores. “Nike operates its business here through local distributors and retail partners. This model works well for us and we may consider exploring opening Nike-owned stores in the future,” a Nike spokesperson said in an e-mailed statement.

IKEA and Hennes & Mauritz are among other prominent firms that are aiming to set up shop in India since the nation removed investment barriers for foreign singlebrand retailers in 2012.

While India’s single-brand segment, where foreign companies are now allowed to hold 100% stake, has attracted investment from overseas players, the supermarkets section, where up to 51% foreign ownership is allowed, continues to disappoint.

Britain’s Tesco, which invested in an equally owned joint venture with Tata Group’s Trent Hypermarket, is the only foreign player that has invested in the multi-brand retail space since September 2012.