UK-based Pavers is planning a solo ride in India after the government cleared the way for it to invest US$20 million in single-brand retail.
The footwear retailer is about to buy out its franchise partner Triton Retail which currently runs 30 Pavers stores in Indian cities. Pavers and Triton formed a franchise agreement in 2008.
“We will be probably acquiring them. The valuation will depend on whether we acquire them partly or fully. Ideally, we would like to acquire some stake initially and then gradually ramp up,” said Utsav Seth, CEO and MD of Pavers England Footprints India.
Underlining India’s potential in the retail market, Pavers says it will take the store count to 500 in two years by opening 120 standalone stores and 350 shops-in-shops.
The 30 per cent sourcing clause for foreign firms to operate single brand stores in India won’t be an issue, says Seth.
“Way back in 2008, we invested US$5 million at an R&D centre in Tamil Nadu, which is now also serving as a global export hub. We are exporting about half a million pairs of shoes a year,” said Seth.
Meanwhile, Indian government also cleared FDI for US clothing retailer Brooks Brothers and Italian jeweller Damiani. Brooks Brothers announced in June its plan to develop a joint venture with Reliance Brands while Damiani will be partnering with Mehta.