Can an Indian company owned up to 70 per cent by a foreign company manufacture products in India using a brand of its parent company? If so, whether this company can sell these manufactured branded products to end-consumers?
Maruti Suzuki, for example, uses the Suzuki brand name in the Indian market. Ditto for the products of the FMCG major Hindustan Unilever Ltd, which is a 51 per cent subsidiary of Unilever of the UK?
In other words, if you set up shop in India as per the FDI norms in the given sector, there is no bar on using foreign brand names.
Thus Wal-Mart, which sells everything from vegetables to travel bags under one roof procured economically and efficiently from other brand owners in several countries including China, is not allowed to cater to the retail consumers in India.
But it is allowed to do business in the cash-and-carry segment, that is, if it is selling to bulk purchasers such as airlines, hotels and hospitals. The Government is having a re-look at this policy.