Mumbai: The Foreign Investment Promotion Board (FIPB) has rejected a proposal by UK-based Alpha Airports to enter the airport retail segment while it cleared Spanish porcelain maker Lladro's proposal for opening retail boutiques in the country.
Lladro, whose application was approved, is forming a joint venture to open retail boutiques to sell products under its brand in India. Lladro will hold 24 per cent in the venture, while the rest would be with its Indian distributor SPA Agencies.
The venture, to be called Lladro India, will invest around Rs22.5 crore to set up retail boutiques. Lladro, however, has the option to increase its stake in the venture up to 49 per cent by 2009.
"Alpha Airports, which had applied for setting up a fully owned Indian subsidiary to carry out retail activities at airports has not got the board's nod," official sources said.
Alpha had proposed to set up duty-free shops that would be in the nature of trade outside the custom territory of India with the shops selling only in foreign currency, which was unacceptable, sources said.
The government has allowed FDI only in single brand retail and that too up to 51 per cent.
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to shop? Head for the airport