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Raghavendra \n Kamath, Business Standard<\/i><\/p>\n Raghavendra \n Kamath, Business Standard<\/i><\/p>\n
Mumbai, \n December 30, 2013<\/i><\/p>\n
More \n foreign investments could flow in $450 billion-worth Indian retail \n after Foreign Investment Promotion Board (FIPB) today gave approval \n to Tesco-Trent\u2019s proposed JV.<\/p>\n
According to retail industry executives, some of the top European, \n Japanese and Korean retailers are seriously pursuing Indian retail. \n <\/p>\n
Leading the pack is French retail giant Carrefour, which is expected \n to apply with the government by March next year, said sources \n in Ministry of Commerce and Industry. <\/p>\n
Carrefour has already spoken to Kishore Biyani\u2019s Future \n group and Shoppers Stop owned Hypercity for possible alliance, \n sources in retail industry said. <\/p>\n
Hypercity, and Aditya Birla have already said that they are open \n to getting foreign partners in their ventures. \u201cIt (approval) \n paves the way for others like us to look at possible partnerships \n to take it to next logical level,\u201d said Govind Shrikhande, \n managing director of Shoppers Stop.<\/p>\n
Retailers were keenly observing how approvals would be given \n to Tesco\u2019s application to pick up 50% stake in Trent Hypermarkets \n run by Tatas. Though government talked about fresh investments \n in Indian ventures, Tesco was investing in existing chain of Trent, \n thereby triggering debate that whether it was a brownfield or \n greenfield venture.<\/p>\n
\u201cEarier, it was meant that FDI can come only in Greenfield \n projects. If the government has cleared this proposal, it means \n FDI is allowed in brownfield also,\u201d Shrikhande said.<\/p>\n
Said Kishore Biyani, founder chief executive and founder of Future \n group;\u201d \u201cWe have to study the whole thing before coming \n to any conclusions.\u201d<\/p>\n
Some like Devangshu Dutta, chief executive of Third Eyesight \n said the policy remains the same and the government is still talking \n about fresh investments.<\/b><\/p>\n
\u201cIf any Indian retailer is looking at adding new facilities \n at back end and front end and looking for FDI, the policy will \n benefit them and not for the retailers who are looking to capitalise \n on existing facilities,\u201d Dutta said.<\/b><\/p>\n
According to a senior director of consulting firm, some activity \n in FDI in retail will happen between now and elections. \u201cBut \n most of the action will happen after elections.\u201d<\/p>\n