Vrinda Oberai RETAILER, New Delhi, January 12, 2012 The Manmohan Singh government has finally given its nod for the relaxation on the existing 51 per cent FDI in single brand retail, increasing it to a much awaited 100 per cent. The move has paved way for single brand foreign retailers’ to own 100 per cent of their operations in the country, possessing fully-owned stores here. However, the decision comes accompanied with a rider that 30 per cent of the value of products sold would have to be mandatorily sourced from small Indian industries/village and cottage industries, artisans and craftsmen, (collectively…
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Pia Heikkila, The National UAE, January 12, 2012 Indians could soon experience the unique frustration of assembling Scandinavian flat-pack furniture as stores such as Ikea are to be allowed to open in the country under new laws on foreign direct investment (FDI). The government is allowing single-brand retailers such as Ikea, Nike, Starbucks and Marks & Spencer to operate in India without local partners. Previously, to operate in the country, a foreign company was required to take a local partner and could hold no more than a 51 per cent share in the joint venture. The likes of Ikea stand…
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The Hindu, BusinessLine Bureaus, January 12, 2012 India Inc has welcomed the lifting of the foreign direct investment (FDI) limit to 100 per cent on single brand retail. Stocks of Indian retailers also rose on the announcement, signifying a thumbs up from investors. But retail sector specialists do not expect a stampede of investments any time soon. Says Mr Shubranshu Pani, MD, Retail, of real estate consultancy, JLLM, “I do not see a sudden surge of investments. Foreign chains will take on local partners because the rider of 30 per cent local sourcing is something that does not happen overnight.…
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Fibre2fashion January 12, 2012 Apparel retailers in India are extending their end-of-the-season discount sales period to clear inventory that has been piled up due to slowdown witnessed in earlier months. Apparel sales in India have been affected due to the increase in prices by 30-40 percent in last 12 months. The rise in the price of raw material and the imposition of excise duty by the Government on branded apparels has led to the increase in prices. The consumer sentiment had also been affected due to rising inflation that had left shoppers with lesser money to spend on clothing, according…
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Sayantani Kar, Business Standard Mumbai, January 09, 2012 The entry of Future Supply Chain Solutions into multi-brand retail via a subsidiary has given some regional brands the kind of exposure they could only aspire to before. Shopping for the humble bathing soap has now become an arduous task for the tiny tot’s mother. She now has to choose not just among proven national brands like Johnson & Johnson or Himalaya, or for that matter Wipro’s Baby Soft; time permitting, she has to examine the benefits of picking a Doy Kids versus a Woodwards or a Mysore Sandal baby soap, and…
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