Multi-Brand Outlets – Foreign Investment – Part -II

Multi Brand Foreign retail Stores in IndiaLate last week, we discussed the the possibility on Why the Government may allow Multi Brand Retail Outlets controlled by foreign / multi-national companies of non-Indian origin. In continuation of our discussion, we will discuss two important questions on this subject “When” this is likely to happen and “Who are the Gainers” of this move.

When Foreign Direct Investment will be Allowed in Multi Brand Retail ?
The change in the regulations are likely to happen within the next few months as the Govt has announced its intentions (more…)

Foreign Investment in Muti-Brand Retail – Part -1

The Government is engaging into discussions to open Multi-Brand Retailing for Foreign Companies. You can Study the Current Foreign Investments in Indian Retail sector here. With recent discussions, we believe that modern retail sector will be opened with certain restrictions, like – 1. JV with local retailers, capping the FDI holding to 49/51%; 2. Minimum 50% of investment on setting up back-end supply chain (Cold chains, warehouses, etc.); 3. Restriction on Cities in which foreign retailers can come in (e.g., 40 cities with population of more than 1mn); 4. some sourcing and business opportunities to be given to SMEs.

This should help the sector to realize its potential of becoming a US$250bn industry by 2020 vs. the current (more…)

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