Decathlon plans to double sourcing from India once EU FTA is finalised

Bengaluru: French sporting goods retailer Decathlon plans to double its sourcing of goods from India once the country's free trade agreement (FTA) with the European Union (EU) is finalised, Sankar Chatterjee, the chief executive of the company's India operations, told ET.

Decathlon Sports India's Chatterjee said if the FTA comes through as expected by December, the Indian production market for sporting goods could see a boom.

"Especially for Decathlon. Currently 6% of the total global sourcing is coming from India, which can move up to 15% in a year. This is a ballpark figure," he told ET.


In terms of quantity, the 6% by value translates to about 100 million units.

The privately-owned company, known for running big-box stores selling bicycles to fitness equipment to cricketing goods, sources textile products such as cotton and synthetic apparels, and raw materials such as yarn and fabric from India.

Decathlon sources goods and raw materials worth about ₹4,150 crore from India, with procurement for Europe accounting for about ₹2,100 crore (about $250 million).

In 2024-25, 60% of the total sourcing from India by value was utilised for exports while the rest was for local sales.

According to Chatterjee, when Europe imports from India, it pays about 9.6% as tax. "Which means Bangladesh, Vietnam and Indonesia compete on many products. If you slash the India export duties to 0%, the game will change. Because India's lead time to Europe is much more convenient. And sometimes, when you compare with Vietnam, Bangladesh and Indonesia, it's 12 days lesser lead time for India," he said.

India is the fourth-largest destination for Decathlon's global procurement after China, Vietnam and Bangladesh.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen committed in February to conclude the India-EU FTA agreement by 2025.

India's bilateral trade in goods with the EU is worth $137.4 billion, with the EU accounting for 17% of India's exports.

Decathlon started sourcing from India in 1999 and has 65 suppliers who operate some 110 factories in the country.

In 2023-24, Decathlon India posted ₹4,066 crore revenue and profit of ₹197 crore. The company is yet to declare its FY25 results.

In India, it operates 133 outlets across 53 cities. Chatterjee said that in the last decade, the number of Indians playing sports or being active increased from 5% of the country's population to 17%.