FDI in Multi Brand Retail Sector - Discussion

[SHASH2K2]

How Indian retailers & businessmen are screwed?

Foreign companies controlling Indian retail market and dictating term is definitely bad. with amount of money they have they will kill all competition in the market. someone says its necessary to stop wastage of food grains. How can this FDI stop food from rotting in the government godawn ? same government which refuses to distributing the food even after supreme courts order.

 

[utubekhiladi]

Today, congress have sold our nation to foreigners.

 

[LurkerBaba]

Okay I'm no economist, can anyone explain how would MNCs be successful, where Reliance failed ?

If this move is to remove middlemen, why didn't our "desi hyper-marts" succeed ? Is MNCs having more capital the only reason ?

 

[plugwater]

Foreign companies controlling Indian retail market and dictating term is definitely bad. with amount of money they have they will kill all competition in the market. someone says its necessary to stop wastage of food grains. How can this FDI stop food from rotting in the government godawn ? same government which refuses to distributing the food even after supreme courts order.

Distributing food for free would collapse the entire cycle.

More competition will make the prices lower.

IMO it is almost certain congress wont win next election, so they should bring as much reforms as possible. Going for the kill is the only option for them.

 

[nrj]

Foreign companies controlling Indian retail market and dictating term is definitely bad.

How are they dictating terms? Laws are framed in parliament. Nobody has denied others to enter market.

with amount of money they have they will kill all competition in the market. someone says its necessary to stop wastage of food grains. How can this FDI stop food from rotting in the government godawn ? same government which refuses to distributing the food even after supreme courts order.

Food rotting in govt godowns is purchased by Govt. Its their problem.

Private sector will take care of its own resources. Currently so called competitive small traders & others account to 40% wastage of annual production in fruit/vegetables.

Govt problems are the ones to be dealt by govt.

 

[SHASH2K2]

Where was the haste? This was long pending reform. Divestment of PSUs is other thing.

Supermarket will bring much need foreign capital in consumer market unclogging all supply bottlenecks & will help inflation to come down.

There are rules of strict local sourcing & minimum investment to protect jobs. Most likely there will be huge employment opportunity creation.

among Reform in retail sector and divestment of PSU shares which one was pending for long ? If money is needed then why this government stopped economic reform and all of a sudden its the FDI in retail sector that will bail out the country from all financial troubles.

 

[plugwater]

among Reform in retail sector and divestment of PSU shares which one was pending for long ? If money is needed then why this government stopped economic reform and all of a sudden its the FDI in retail sector that will bail out the country from all financial troubles.

Something is better than nothing! As inflation is the top priority, they have done this.

So stop whining!!!

 

[nrj]

among Reform in retail sector and divestment of PSU shares which one was pending for long ? If money is needed then why this government stopped economic reform and all of a sudden its the FDI in retail sector that will bail out the country from all financial troubles.

I don't know why are you relating divestment with FDI limits? Priorities will differ from person to person, industry to industry.

I don't give a damn about whichever govt it is. Its their equations of expenditure to worry about.

More competition will bring down end consumer costs.

 

[utubekhiladi]

How are they dictating terms? Laws are framed in parliament.

laws formed in parliament does not effect corporate policies. if you(desi) and me(american) own a company, lets say i own 51% and you own 49% of the company, then i have the full authority to set the play book in the indian market. while you have no other choice. all you can do is bow to me...

so when are you going to answer my previous question "how Indian companies is not screwed by this?"

 

[SpArK]

FDI announcement has been received well by stock markets and it astonishingly rebounded after days of crashes.

FDI is a brilliant move since the disparity of rupee dollar needs to be addressed before the economy crashes further.

Let there be some demand on rupee and dollar prices come back to lower levels.

 

[nrj]

laws formed in parliament does not effect corporate policies. if you(desi) and me(american) own a company, lets say i own 51% and you own 49% of the company, then i have the full authority to set the play book in the indian market. while you have no other choice. all you can do is bow to me...

You are right there. Corporate policies are not affected by laws, making it subjective.

so when are you going to answer my previous question "how Indian companies is not screwed by this?"

Again I haven't made omniscient statement. You couldn't say how they are screwed for sure?

If more competition is going to screw them then be it. Why native consumers should worry about profit margins of desi companies? They are interested to buy goods at lower prices. Its their business management skills that will be tested. Why politics should guard it?

Market is open, they can also raise their capital.

There are rules which will guard domestic interests of Govt

* Fresh agricultural produce, including fruits, vegetables, flowers, grains, pulses, fresh poultry, fishery and meat products, may be unbranded

* The minimum amount fixed for a foreign investor is $100 million

* At least 50 per cent of the total FDI must be invested in 'back-end infrastructure'

* At least 30 per cent of the procurement of manufactured and processed products should be sourced from 'small industry'

* Compliance through self-certification. Investors need to keep all records

* Retail sale locations can be set in cities with more than one million population, based on the 2011 census

* The government will have the first right to procure agricultural produce

 

[utubekhiladi]

You are right there. Corporate policies are not affected by laws, making it subjective.



Again I haven't made omniscient statement. You couldn't say how they are screwed for sure?

If more competition is going to screw them then be it. Why native consumers should worry about profit margins of desi companies? They are interested to buy goods at lower prices. Its their business management skills that will be tested. Why politics should guard it?

Market is open, they can also raise their capital.

There are rules which will guard domestic interests of Govt

we will talk about the rules later, all these rules are there.... that's good..

how will these rules help to prosper and protect Indian industries?? they say 50% must be invested in back-end infrastructure ...

but i think "back-end infrastructure" word is currently not well defined..

 

[utubekhiladi]

as rupee value is down, we will need to pay higher price for the foreign goods...

so much for bringing down prices and inflation.

 

[SpArK]

Industry Welcomes 51% FDI in Multi-Brand Retail


India Inc today hailed the government's decision to allow 51 per cent FDI in multi-brand retail while completely opening single-brand retail to overseas investors, saying the move would help bring in the much needed capital for the sector.

"It is a win-win situation for everyone. With the amount of money to be invested in back-end, supply chain and farm sector will benefit," Future Group Chief Executive Officer Kishore Biyani told PTI.

Even the small and medium enterprises will benefit. Eventually consumers will get a lot of choices and they will get products at better prices, he added.

Shoppers Stop Vice Chairman B S Nagesh said: "I welcome FDI in retail. Capital is required for the market whether it comes from domestic or foreign investors, it will help grow the sector in the next 3-5 years."

Commenting on the impact of opening the sector to foreign players he said: "There will be no impact on the domestic industry as there is enough market. At the end of the day the consumer will benefit."

Sharing similar view, industry body CII said it strongly supports the introduction of FDI in multi-brand retail as it would benefit consumers, producers (farmers), small and medium enterprises and generate significant employment.

"This would open up enormous opportunities in India for expansion of organised retail and allow substantial investment in the back-end infrastructure like cold chains, warehousing, logistics and expansion of contract farming," CII President B Muthuraman said in a statement.

Previously, no FDI was allowed in multi-brand retail while in the single-brand retail only 51 per cent was allowed. In the wholesale cash and carry, 100 per cent FDI is allowed.


FILED ON: NOV 24, 2011 21:

news.outlookindia.com | Industry Welcomes 51% FDI in Multi-Brand Retail

 

[SpArK]

as rupee value is down, we will need to pay higher price for the foreign goods...

so much for bringing down prices and inflation.

What foreign goods? :shocked:

Relevance to FDI?????:shocked:

 

[nrj]

we will talk about the rules later, all these rules are there.... that's good..

I could never wait.

how will these rules help to prosper and protect Indian industries??

Same was asked back in '90s while opening market. I won't point who was proved wrong.

they say 50% must be invested in back-end infrastructure ...

but i think "back-end infrastructure" word is currently not well defined..

Wait for a day. You'll have detail draft of same with every technical clause defining the same.

And if you are in possession of same bill, please share it for the sake of discussion here so that all can gain knowledge.

 

[utubekhiladi]

What foreign goods? :shocked:

Relevance to FDI?????:shocked:

it looks like you have no idea what this thread is all about

 

[SpArK]

it looks like you have no idea what this thread is all about

As far as i know its about FDI in retail sector not purchases from abroad.

If i am wrong just educate me on the relevance of price of foreign goods on FDI..

I am kinda good learner.

 

[utubekhiladi]

I could never wait.



Same was asked back in '90s while opening market. I won't point who was proved wrong.



Wait for a day. You'll have detail draft of same with every technical clause defining the same.

And if you are in possession of same, please share it for the sake of discussion here so that all can gain knowledge.

i am sure, i won't be able to get my hands on the full draft. i am eager to see the draft in full detail as well.

this is a doom for indian industries.

 

[LETHALFORCE]

There is going to be a storm of America retailers in India and I doubt India will be prepared or the govt has any idea what a can of worms they are opening.