Acer to open Retail stores in India

Acer has sought approval from the Indian Govt. to convert its local business model to retail from wholesale, as the Taiwanese electronics firm seeks to set up outlets to sell PCs & handsets directly to consumers here. (ET Bureau)

The Company would start manufacturing smartphones in India from its Puducherry unit in the next three months. It already assembles desktops here.

“We are extremely excited about Make in India and the time has come that India makes use of its educated manpower in the manufacturing space,” said Chandrahas Panigrahi, senior director of consumer business at Acer India. The Department of Industrial Policy & Promotion (DIPP) last month received Acer’s application seeking to change its business model in India. It is looking to sell both online and offline. Acer’s products include PCs, displays, projectors, servers, tablets, smartphones and wearables.

Established in 1976, the company is present in 160 countries. Brands such as Levi Strauss , Puma, Adidas and Pepe have also applied for expanding their business to retail from wholesale, after the government relaxed foreign direct investment (FDI) rules for companies manufacturing in India, allowing them to enter wholesale, retail as well as the e-commerce space.

Companies that have the licence for single brand retail and have their brick & mortar stores in India can also sell online. The government allowed 100% foreign direct investment in single-brand retail in January 2012. If the investment is for more than a 49% stake, it needs the approval of the Foreign Investment Promotion Board.

Beyond 51% foreign direct investment, it is required that 30% of the value of goods be sourced from India, preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen. The government is considering relaxing the 30% sourcing requirement for global tech major Apple , under new rules applicable for companies bringing cutting edge technology to India.

Foreign direct investment into India touched the highest ever at $51 billion during April-February in FY16. (www.timesofindia.com)