Fdi in Multibrand Retailing
FDI IN MULTIBRAND RETAILING
Every second day we read newspaper headlines discussing the most debatable issue of the country i.e. FDI in multibrand retailing. Is it going to pinch our pockets or will it b a boon to India?? Let’s take an insight of it….
Meanings
FDI i.e. foreign direct investment is an investment made by a company or entity based in one country, into a company or entity based in another country
Retail is the sale of goods and services from individuals or businesses to the end-user.
Multi-brand retail means shops that will sell items from branded goods to vegetables under one roof.
FDI in multi brand retailing implies that a retail store with foreign investments can sell more than one brand under a single roof.
Trends so far
• The Indian government gave permission for up to 51% FDI in multi-brand retail in September 2012.
• The objective of this policy is to boost the retail business through adoption of international standards and practices.
• The entry of international products, practices and technology is expected to enhance the efficiency of domestic retailers.
• The government has made it mandatory for foreign multi-brand retailers to place at least 50% of their total investment in back-end infrastructure, thus giving a boost to facilities such as logistics and warehousing
Case study Wal-Mart
Wal-Mart Stores, Inc. branded as Wal-Mart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.
.
This company is the world's third largest public corporation, the biggest private employer in the world with over two million employees, and is the largest retailer in the world.
In 2007, Walmart announced an agreement with Bharti Enterprises to establish a joint venture, Bharti Walmart Private Limited, for wholesale cash-and-carry and back-end supply chain management operations in India. A typical wholesale cash-and carry facility stands
Every second day we read newspaper headlines discussing the most debatable issue of the country i.e. FDI in multibrand retailing. Is it going to pinch our pockets or will it b a boon to India?? Let’s take an insight of it….
Meanings
FDI i.e. foreign direct investment is an investment made by a company or entity based in one country, into a company or entity based in another country
Retail is the sale of goods and services from individuals or businesses to the end-user.
Multi-brand retail means shops that will sell items from branded goods to vegetables under one roof.
FDI in multi brand retailing implies that a retail store with foreign investments can sell more than one brand under a single roof.
Trends so far
• The Indian government gave permission for up to 51% FDI in multi-brand retail in September 2012.
• The objective of this policy is to boost the retail business through adoption of international standards and practices.
• The entry of international products, practices and technology is expected to enhance the efficiency of domestic retailers.
• The government has made it mandatory for foreign multi-brand retailers to place at least 50% of their total investment in back-end infrastructure, thus giving a boost to facilities such as logistics and warehousing
Case study Wal-Mart
Wal-Mart Stores, Inc. branded as Wal-Mart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.
.
This company is the world's third largest public corporation, the biggest private employer in the world with over two million employees, and is the largest retailer in the world.
In 2007, Walmart announced an agreement with Bharti Enterprises to establish a joint venture, Bharti Walmart Private Limited, for wholesale cash-and-carry and back-end supply chain management operations in India. A typical wholesale cash-and carry facility stands