FDI Archives - Inside Retail Asia

Amazon India, Samara Group buy Indian supermarket chain

Samara Capital and Amazon will acquire food and grocery retail chain More from Aditya Birla Group.

How to navigate Indian FDI regulations

Indian FDI regulations are among the most complex in the world.

Korean beauty brand to go solo in India

South Korea’s biggest beauty brand is to set up shop in India under the country’s foreign direct investment program. Innisfree is the latest international retailer to establish a single brand retail format after committing to sourcing at least 30 per cent of its stock from within India, expanding its already strong Asian presence. India’s Financial Express reports India’s Department of Industrial Policy and Promotion (DIPP) has approved Innisfree India to sell its products through …

Ikea signs Indian agreement

Swedish furniture retailer Ikea has signed a memorandum of understanding with Telangana government to open in the state. The memorandum, signed by Ikea CEO Juvencio Maeztu and Telangana government special chief secretary industries Pradeep Chandra, will enable Ikea to open its first Indian store in Hyderabad, the state’s capital. Ikea’s proposal to invest US$2 billion to open 25 stores across the country was approved by the Indian government in May 2013 under the liberalised FDI policy. …

Retailers wary of new Indian govt

India has a new leader but what does that mean for international retailing? After what feels like an eternity of waiting, India now has a new leader. No one is surprised as all polls had been confidently forecasting the result as inevitable. Narendra Modi, the son of a tea seller with political roots in India’s Hindu nationalist movement, is now the Prime Minister of the world’s largest democracy. The Prime Minister comes with a powerful CV built over the years by way of his position as…

[:en]Tesco bullish on India[:zh]Tesco看好印度市场

[:en]The world’s second largest retailer Tesco is undaunted by the new political uncertainty in India. Tesco and its JV partner Trent of Tata Group remain on track to expand in Maharashtra and Karnataka, which, among other states, allow FDI in multi-brand retail. Trent and Tesco agreed to equally own Trent Hypermarket which operates ‘Star Bazaar’ and ‘Star Daily’ brands. “We firmly believe that our partnerships in both China and India will allow us to capitalise on these eno…

Metro plans 50 Indian stores

German retailer Metro plans to add 34 new stores in India by 2020 taking its network to 50. “We have seen continuous like-for-like growth recently in India. Now we have decided to inject extra momentum into our expansion course there,” Metro CEO Olaf Koch said. Metro says it wants to make India as big as its leading markets of China, Russia and Turkey. The retailer entered India in 2003, operating cash-and-carry business, serving traders, hotels, restaurants and small businesses. Its…

Carrefour mulls Indian exit

French hypermarket retailer Carrefour says it will withdraw from India due to the lack of clarity of FDI policy for multi-brand retail. Carrefour plans to shut down or sell its five wholesale stores in India to exit the market. Reports say the company is in talks with Bharti to sell its stores there. The plan comes after the Bharatiya Janata Political Party released a manifesto that opposes foreign multi-brand retailers. While Carrefour is dismayed about the hostility of many Indian …

Indian mall space burgeons

Global consultancy Cushman & Wakefield forecasts the total fresh mall supply by the end of 2014 is projected to be approximately 14 million sqft in the top eight cities of India. That’s almost 200 per cent more than the new supply of 2013 which was recorded at almost 4.6 million sqft. “With the retail FDI in place, developers are expecting demand from foreign brands to start pointing northwards, which puts added pressure for them to create conducive shopping environment,” said Sanjay…

Tesco mum about Indian plans

British retailer Tesco is mum about its plans for India after the Bharatiya Janata Party released a manifesto opposing foreign multi-brand retailers. Tesco, in March, formed a joint venture with Indian retailer Trent, a part of Tata Group, to operate ‘Star Bazaar’ and ‘Star Daily’ stores in south and west India. When asked about the details of their expansion plan, both partners declined to give their comments. “The FDI policy doesn’t encourage any foreign retailer to make investments i…

Indian government rejects Decathlon plan

French sports goods retailer Decathlon’s plan to open a single brand online store in India has been rejected by the Department of Industrial Policy and Promotion (DIPP). Decathlon argued that by allowing it to undertake retail trading through e-retail channel, it expected that local sourcing from Indian vendors would increase in the long run, thereby benefiting the Indian vendor base, both qualitatively and quantitatively. However, the DIPP has turned down the proposal citing the foreign d…

Foreign supermarkets continue to eye India

Foreign supermarket chains are making a beeline to India, sensing the immense growth opportunity of the country’s $500-billion retail sector. After the government allowed 51 per cent FDI in multi-brand retail in September 2012, many global retailers have moved to make their presence felt in the Indian market. They firmly believe in India’s economic growth story, which has paved the way for a flourishing middle class with rising disposable income, says researcher WallStAnalyst. Moreover, In…