After India’s free trade agreement (FTA) with the European Union (EU) is concluded, French sporting goods retailer Decathlon intends to double its procurement of items from that nation, according to Sankar Chatterjee, CEO of the company’s India operations.
According to Chatterjee, the Indian sporting goods industry market may experience a boom if the FTA is finalised by December as anticipated, particularly for Decathlon. India currently accounts for 6 per cent of global sourcing, but that percentage might rise to 15 per cent in a given year. The 6 per cent by value corresponds to roughly 100 million units in terms of quantity.
The business, which is well-known for operating big-box stores that sell everything from bicycles to exercise gear to cricket gear, sources textile items like cotton and synthetic clothing as well as raw materials like yarn and fabric from India. About Rs. 4,150 crore (US $ 487 million) worth of goods and raw materials are sourced from India by Decathlon, whereas roughly Rs. 2,100 crore (almost US $ 250 million) is spent on procurement for Europe.
Sixty per cent of India’s entire sourcing value in 2024–2025 went towards exports, with the remaining portion going towards local sales. Chatterjee claims that Europe pays roughly 9.6 per cent in taxes when it imports goods from India. This implies that Vietnam, Indonesia, and Bangladesh compete on a wide range of goods. The game will alter if export duties from India are cut to zero per cent, due to India’s significantly more convenient lead time to Europe. Additionally, he stated that India’s lead time is frequently 12 days shorter than that of Vietnam, Bangladesh, and Indonesia.
After China, Vietnam, and Bangladesh, India ranks as Decathlon’s fourth-largest global procurement location. Decathlon has 65 suppliers that run over 110 plants in India, where it first began sourcing in 1999. Decathlon India reported Rs. 4,066 crore (US $ 477 million) in revenue and Rs. 197 crore (US $ 23.14 million) in profit in 2023–2024. The business has not yet released its FY ’25 earnings.
It runs 133 stores in 53 cities in India. According to Chatterjee, the percentage of Indians who participate in sports or are active has risen from 5 per cent to 17 per cent during the past ten years.
