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(b) Products
should be sold under the same brand internationally i.e., products should be
sold under the same brand in one or more countries other than India.
(c) ‘Single
Brand’ product-retail trading would cover only products which are branded
during manufacturing.
(d) The
foreign investor should be the owner of the brand.
(e) In
respect of proposals involving FDI beyond 51%, mandatory sourcing of at least
30% of the value of products sold would have to be done from Indian ‘small
industries/village and cottage industries, artisans and craftsmen’. ‘Small
industries’ would be defined as industries which have a total invest-ment in
plant & machinery not exceeding US $ 1.00 million. This valuation refers
to the value at the time of installation, without providing for depreciation.
Further, if at any point in time, this valuation is exceeded, the industry
shall not qualify as a ‘small industry’ for this purpose. The compliance of
this condition will be ensured through self-certification by the company, to
be subsequently checked, by statutory auditors, from the duly certified
accounts, which the company will be required to maintain.
(3) Application
seeking permission of the Government for FDI in retail trade of ‘Single
Brand’ products would be made to the Secretariat for Industrial Assistance
(SIA) in the Department of Industrial Policy & Pro-motion. The
application would specifically indicate the product/product categories which
are proposed to be sold under a ‘Single Brand’. Any addition to the product/product
categories to be sold under ‘Single Brand’ would require a fresh approval of
the Government.
(4) Applications
would be processed in the Department of Industrial Policy & Promotion, to
determine whether the products proposed to be sold satisfy the notified
guidelines, before being considered by the FIPB for Government approval.
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