Eric Johnson American Shipper, November 28, 2011 The Indian government last week opened its doors to multinational retailers through a relaxing of foreign direct investment regulations. The government has proposed allowing single-brand retailers (such as the furniture giant IKEA) to wholly own stores in India, while multi-brand retailers (like Wal-Mart and Carrefour) can own a 51 percent stake. Previously foreign single-brand retailers could only own a 51 percent stake in a joint venture with a domestic company, and multi-brand retailers could not hold any stake in front-end retail operations. The moves, which have yet to be formalized, could greatly impact…
(This piece appeared in the Financial Express on November 26, 2011.) The debate on allowing more foreign investment in retail reminds me of an incandescent bulb: producing more heat than light. With a variety of agendas at play, the heat has been generated by both sides, for and against foreign investment in retail. Conflicting views have emerged not just outside but from within the government and the civil services as well. Much time has been spent, multiple studies and consultations carried out, even as behind-the-scenes negotiations have gone on. We can now all let out our collective breaths. The Indian…
Purvita Chatterjee, The Hindu Businessline Mumbai, November 25, 2011 Mr Kishore Biyani, Chairman of the Future Group, is holidaying in Brussels right now. But he may well extend his trip from Belgium to the neighbouring country to renegotiate with French retailer Carrefour, after foreign direct investment in multi-brand retail was approved by the Government yesterday. Looking forward to fresh infusion of funds into his debt-laden retail company (Pantaloon Retail and its fully-owned subsidiaries), India's Sam Walton had been lobbying hard for FDI to come in and was elated when it was finally declared. Speaking from Brussels on the night FDI…
Purvita Chatterjee, The Hindu Businessline Mumbai, November 18, 2011 It is the kirana stores and smaller traders that seem to be patronising Metro Cash & Carry's wholesale stores rather than the big-format retailers. In spite of providing supply chain efficiencies, it is inadequate scale in the cash-and-carry operations which is making the latter stay away from the cash-and-carry wholesale formats such as Metro Cash & Carry. According to Mr Rajeev Bakshi, Managing Director, Metro Cash & Carry, “Large, modern trade outlets continue to source directly from the manufacturers as it gives them better margins. We have mainly smaller traders, hotels…
Pia Heikkila The National , November 13, 2011 It is Saturday afternoon at Mumbai's posh Phoenix Mills mall and the place is buzzing. Giggling girls sit by the central courtyard sipping cold drinks, taking a breather. International labels such as Zara, Mango and French Connection adorn their shopping bags. Very soon a new brand could tempt these marathon shoppers. Kenneth Cole - the US apparel retailer - has entered into a deal with India's Reliance Brands to launch retail and wholesale operations in India. Analysts say Kenneth Cole's market entry comes at an opportune time. "The timing is right for…
Geopolitical friction has again sparked renewed concerns over inflation and rising input costs for FMCG companies as @itmeansjustice @whysnavi write. @devangshu commented.
