Louis Vuitton, Lladro & Moja Shoes seek retail entry thru FDI route

19 May '06

2 min read

With the Government acceeding to partial request of Foreign Direct Investments (FDI) in retail to the tune of 51 percent, has drawn a few companies to venture for foreign tie-up. Haryana-based Moja Shoes Pvt Ltd which manufactures premium sports and lifestyle shoes for domestic and international markets, alongwith leading international luxury goods brand - company, Louis Vuitton Malletier of France and Spain based Lladro Commercial SA have submitted separate proposals for Government approval.

This year in February, Government announced raising of FDI in the retail sector for investment only in one brand, and so far these are the only companies who have shown keen interest and begun formal negotiations with the Government.

Moja Shoes, Sonepat, Haryana has sought after consent to bring in FDI from Mauritius based Tano India Private Equity Fund-1.

Meantime, the FDI inflow throughout financial year 2005-06 is estimated at about US $8.3 billion, up 50 percent from $5.53 billion last financial year. This comprises equity as well as reinvested proceeds and other capital.

According to the Commerce Minister Kamal Nath, FDI inflow into India would reach $10 billion yearly going by the current trends.

FDI in the equity alone stood at $5.13 billion, which is the highest ever inflow the country has got throughout the year and is 60 percent more than last year's figure.

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