Japanese retail giant Uniqlo which is planning to open up to 1,000 stores in India, will start consultations with exporters by the second week of this month to source garments from the country.
The company will follow into the footsteps of other global giants like IKEA and H&M, to set up shop in India. Uniqlo had earlier asked the Apparel Export Promotion Council (AEPC) to identify 10 big garment exporters.
"We have already got confirmation that the retailer has received the list and they will start consulting with exporters by the second week of this month," AEPC Chairman Virender Uppal told The Pioneer.
Uppal expressed hope that a possible meeting between Uniqlo Chairman and CEO Tadashi Yanai with Prime Minister Narendra Modi (during his ongoing Japan visit) could take place to discuss the company's entry into India.
Official sources also indicated that Modi may meet Yanai in Japan. "We also hoping that they will meet to carry forward their discussion," a source said.
Uniqlo has been studying the Indian market for the past two years before planning its entry in the country.
The AEPC had initially given a list of 22 exporters to Uniqlo to choose from, out of which it selected 10. Sources close to the development said that Haryana-based Shahi Exports Pvt ltd has already started supplying to the Japanese clothing giant.
In June Yanai during his visit to India, had met Modi, Commerce Minister Nirmala Sitharaman and Textiles Minister Santosh Kumar Gangwar, to discuss its plans of setting up stores in the country.
Uniqlo which currently has 632 stores outside Japan is targeting around 1,500 stores across the globe. Several multinational brands including Zara, Next, GAP, Marks & Spencer, Ann Taylor, Ralph lauren, Abercrombie and Fitch source their raw material substantially from India, as the country has a textile and clothing value chain worth $90 billion, which is around 5 per cent of the GDP.
Currently Uniqlo sources apparels from China, Vietnam, Bangladesh and Indonesia. The NDA Government is aiming at foreign investments to revive manufacturing in the country. It has already liberalised the FDI regime in the defence, railway infrastructure and construction sectors.
Currently, 100 per cent FDI is allowed in the single-brand retail segment. Japan ranks fourth in terms of FDI in India.