Fossil to invest $4.5million after FDI approval
Fossil India, the wholly owned subsidiary of the $3.2 billion American lifestyle brand Fossil Inc, is planning to invest Rs 25 crore in the country following regulatory approvals to set up single brand stores. Fossil is among the first batch of global lifestyle brands that got approval by the Foreign Investment Promotion Board, after the central government increased the FDI limit in single brand retail to 100 percent.
The company says that the government has mandated the foreign retailers to use at least 30 percent of local resources.
Fossil manufactures a range of lifestyle products that include watches, jewellery, sunglasses and leather goods. The brand is famous because of its watches. The 50 percent of Fossil’s global sales come from its leather products. Mr. Vasant Nangia, MD, Fossil India says that as per their FDI proposal, Fossil is planning to open 21 retail stores in next 3 years, mainly across the top cities in country.
The company opened its first store in the economic capital of country in the starting of this month and also opened a factory outlet in Bangalore, which is also the headquarter of the company in India.
Mr. Nangia also added that at the end of current year, the Palwan facility will help develop 500,000 watches per year.
The company also develops watches for the international brands like Burberry, DKNY, Emporio Armani and Diesel.
As fossil does not have permission to open multi-brand retail stores in the country, the company sells its other brand of watches under agreement with the Indian watch retailers.
Source: The Times of India
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