The Foreign Investment Promotion Board (FIPB) has, however, turned down the request of the sports-gear manufacturers' Indian subsidiary,Adidas India, to enhance royalty payment by 12.75 per cent. It said that the terms and conditions to payment of royalty would remain unaltered.

The equity capital of Adidas India, the wholly-owned subsidiary, is sought to be increased to $4.8 million from $3.2 million. Fresh equity would be brought in the existing shareholding pattern -- 99 per cent by Adidas Germany and one per cent by Adidas International BV, Netherlands.

The equity capital of the joint venture, Adidas India Trading, is sought to be increased from $4 million to $6.2 million. The share capital would be enhanced through a rights issue. Consequently, the foreign equity in the joint venture will increase to $5.2 million from the current level of $4 million.

Adidas IndiaTrading is a joint venture between Adidas and Magnum International Trading Company. Adidas controls 80 per cent shares in the company while the balance is with Magnum. The joint venture had been primarily set up to source, distribute and market sports footwear, sportswear and sports equipment manufactured in the country.