Chinese handset maker LeEco on June 20 said the government's move to relax FDI norms for foreign players in single-brand retail will help accelerate its expansion plans in the country.
Welcoming the government's decision, LeEco said it will look at setting up 5-10 flagship stores in key cities within 3-6 months of getting the approval.
"We plan on setting up 500 stores in the next one year. Most of these will be franchise but 5-10 will be our own flagship stores in key cities. We will look at setting these up in 3-6 months after getting the requisite approvals," LeEco India Smart Electronics Business COO Atul Jain told PTI.
Jain added that LeEco had filed an application with the Foreign Investment Promotion Board (FIPB) seeking approval for opening single brand retail shops in India.
"This is a positive step. We hope that our application will get cleared at a faster pace," he said.
Jain said the company remains committed to its plans of manufacturing in India and will make an announcement in the matter soon.
The government on June 20 relaxed FDI norms by giving a three-year exemption from local sourcing to foreign players in single-brand retail and a further five-year relaxation for 'state-of-art' and 'cutting-edge' technology.
US-based Apple is expected to be the biggest beneficiary of the decision. The company had been lobbying hard for the exemption from the mandatory 30 per cent local sourcing on the grounds that its products have such high-end technology and therefore, cannot be sourced locally here.
The US-based technology giant, whose global CEO Tim Cook was recently in India and had discussed possibilities of manufacturing and retailing here during his meeting with Prime Minister Narendra Modi, will have to apply afresh for opening single-brand retail stores here as per the new guidelines.
Apple did not respond to an emailed query.
LeEco's rival Xiaomi had also submitted its proposal but had later withdrawn its application.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
