FDI PLAY Quiksilver seeks 51:49 Reliance JV

Deal Street Abuzz With Talks Of Buyouts, Joint Ventures Even As Cos Battle Slowdown Mumbai: Several global fashion brands are queuing up to take controlling interest in their Indian operations as they look to offset slowing growth in matured western markets. Sportswear retailer Quiksilver is the latest to approach the Indian government to own a 51% stake in their local business, which is managed by Reliance Brands.      The NYSE-listed Quiksilver, through a European subsidiary, has sought permission to float a 51:49 joint venture with Reliance, with which it had a distribution agreement till now. "Quiksilver will take 51% stake under single-brand FDI while we will continue to manage local operations. This would help them to consolidate India sales in their global revenue," Reliance Brands CEO Darshan Mehta told TOI.      Quiksilver joins an expanding list of international fashion brands tapping the single-brand FDI route to control retailing operations in India. French brand Promod, British footwear chain Pavers, Italian fashion brand Damiani and Brooks Brothers of US have moved applications in recent weeks. A Reuters report on Monday said six global brands have approached the commerce ministry seeking permission under the current FDI regime.      American designer clothier Tommy Hilfiger wants to own and manage retail stores directly while leaving the 50:50 joint venture with Arvind intact. But Tommy Hilfiger denied reports that it would take a controlling 51% stake, stating the partnership with Arvind would remain as an  equal JV. "We wanted to directly manage our stores in a key growth market like India," said a source who did not wish to be named.      Early this year, the government allowed foreign single-brand retailers to set up wholly-owned operations in the country but with a condition that these firms would source 30% of their requirement from small scale industries. This has, however, discouraged foreign retailers from applying for 100% ownership.