The company said it was significantly increasing its commitment to Indian manufacturing. File photo: Special Arrangement

Decathlon, a global multi-specialist sports brand, has announced to invest €100 million in India over the next five years.

“This investment will be channelled towards expanding the store network to reach 190 stores across India, enhancing digital engagement, and deepening its commitment to local manufacturing,” the company announced in New Delhi.

“India has emerged as a pivotal market for Decathlon, exhibiting remarkable growth. This substantial investment underscores the company’s long-term vision for the country, extending beyond business growth to foster sports participation and sustainable development,” it added.

Steve Dykes, global chief retail and countries officer, Decathlon in a statement said, “India is a cornerstone of the company’s global ambition.”

“We are committed to accelerating our growth here, expanding our reach, and making a positive impact on people’s lives through sports. India’s potential to become a global manufacturing and innovation hub for the company is immense,” he added.

Decathlon India chief executive officer Sankar Chatterjee said, “India is a dynamic and growing market with a burgeoning sports culture. This investment reflects our unwavering belief in the country’s potential and our commitment to contributing to its economic growth.”

“We aim to make everyone enjoy the benefits of sports, and this investment will enable us to reach a wider audience and offer a more comprehensive sports experience. We aim to create a lasting impact by fostering sports participation, generating employment in India, and promoting sustainable practices,” he added.

The company said it was significantly increasing its commitment to Indian manufacturing. Currently, around 8% of its global product range, including all cricket bats, accessories, and most hockey equipment, is produced in India.

Today 68% of quantities sold in India are made in India. The company aims to boost this figure to 85% by 2026.

New Delhi:

India is planning to offer incentives of up to Rs 18,000 Crore ($2.2 billion) to spur local manufacturing in six new sectors including chemicals, shipping containers and inputs for vaccines, two government officials said.

The proposal is part of the country’s 1.97-trillion-rupee production-linked incentive scheme (PLI), launched in 2020 which currently targets 14 sectors ranging from electronic products to drones, but has been successful only in a handful of them.

A fraction of the PLI incentives has been claimed so far, prompting the government to allocate unused funds to new sectors.

Limited payouts under the scheme could lead to “large” savings which may be redirected to new sectors, the two government officials with knowledge of the plan said.

They did not wish to be named as details of the plan have not been made public. India’s federal trade ministry that oversees the scheme’s implementation did not immediately respond to an emailed request for comment.

The six new sectors that could join the PLI scheme also include toys, bicycles, leather and footwear, the officials said. These sectors will share the Rs 18,000 Crore (180-billion-rupee) allocation that is being carved out from the scheme’s original outlay, they added.

India sees the PLI scheme as crucial to boosting the broader Indian economy which has been starved of private investment for nearly a decade and is struggling to create adequate jobs, particularly in manufacturing.

Total incentives worth nearly 29 billion rupees were paid out in the fiscal year that ended in March. Little has been paid to businesses in sectors including speciality steel products, solar modules, and car components, according to a government report seen by Reuters.

In the fiscal year that started in April, the disbursements could rise to nearly 11,000 Crore rupees and to 40,000 Crore rupees by fiscal year 2024/25, one of the two officials said, citing an internal analysis by the government.

“The disbursements should be better than this estimate after some tweaks to the scheme,” the official said, adding such tweaks would help speed up payouts and some sectors may get an additional year or two under the scheme.

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