24 May, Mumbai 2025
French sporting goods giant Decathlon plans to double its sourcing from India once a free trade agreement (FTA) between India and the European Union (EU) is finalized, says Sankar Chatterjee, CEO, Decathlon India.
If, as expected the FTA is secured by December, India's sporting goods production market could experience a substantial boom, particularly benefiting Decathlon. Currently, 6 per cent of the brand’s total global sourcing comes from India, which could increase to 15 per cent in a year, states Chatterjee.
A privately owned company known for its large-format stores selling everything from bicycles to fitness gear and cricket equipment, Decathlon sources textile products like cotton and synthetic apparel, along with raw materials such as yarn and fabric, from India. The company's total procurement from India is valued at about Rs 4,150 crore with roughly Rs 2,100 crore specifically for European markets. In FY24-25, 60 per cent of Decathlon's total sourcing from India by value was allocated for exports, with the remainder for local sales.
According to Chatterjee, European imports from India currently incur a tax of about 9.6 per cent. This means Bangladesh, Vietnam, and Indonesia compete on many products, he explains. If you slash the India export duties to 0 per cent, the game will change. Because, India's lead time to Europe is much more convenient, and compared to Vietnam, Bangladesh, and Indonesia, it's 12 days lesser, he adds.
India is currently the fourth-largest destination for Decathlon's global procurement, trailing only China, Vietnam, and Bangladesh. The India-EU FTA is a high priority, with Prime Minister Narendra Modi and European Commission President Ursula von der Leyen committing in February to conclude the agreement by 2025. Bilateral trade in goods between India and the EU currently stands at $137.4 billion, with the EU accounting for 17 per cent of India's exports.
Decathlon began sourcing from India in 1999 and now works with 65 suppliers operating approximately 110 factories across the country. For FY23-24, Decathlon India reported Rs 4,066 crore in revenue and a profit of Rs 197 crore. Domestically, Decathlon operates 133 outlets across 53 Indian cities.
