German baby products retailer Prowl Germany UG plans to take advantage of India’s opportunities in multi-brand retail.

With an investment of Rs600 crore (approximately US$118 million), the company says it plans to open owned multi-brand stores and manufacturing plant in the next four to five years.

Prowl Germany UG, whose brands include Nip, Hess-Spielzeug, Deryan and Spiegelburg International, is preparing to apply to FIPB for FDI in multi-brand retail.

Since FDI clearance may takes time, the company says it will sell products through distribution for the meantime. It has signed Kochi-based Zaal Commercial as its distributor for its brand Nip, which has already been launched in four states such as Kerala, Andhra Pradesh, Tamil Nadu and Karnataka.

A senior company executive said plans for India are phased into three – distribution, manufacturing and owned stores.

“The first phase is distribution. We will set up an original equipment manufacturing (OEM) in the second phase and our own multi-brand retail stores in the third,” he said.

India’s baby and children’s products market attracts many foreign retailers due to its potential to grow into $26.2 billion industry by 2017, says research company RNCOS.