JOIN USThe Centre’s move to allow 51 per cent foreign direct investment (FDI) in multi-brand retail has been hailed by all stakeholders, notwithstanding vociferous protests by the Opposition and a section of the ruling UPA, which is on expected lines.
FMCG companies see the move coming with multiple spinoffs. CEO and Managing Director of Tata Global Beverages Ltd, Harish Bhat, said, “It is a positive move, a progressive step that will help retail infrastructure in India, and ultimately, customers.
We have seen it happening it worldwide. The Tata group is a big player in the retail sector and hopes to benefit from the move.”
President -- Marketing at Café Coffee Day K Ramakrishnan, commenting on the impact on his business, said, “In the café business, competition is inevitable. But there is room for many players as the market is yet to mature.”
Real estate players are also set to benefit from the move, according to Jones Lang LaSalle that specializes in financial and professional services.
Chairman and Country Head of the company’s India operations Anuj Puri said, “It will help in investment for back-end retail to improve efficiency and productivity in retail and also help boost mall development in India.
Executive MD, South Asia, Cushman & Wakefield Sanjay Dutt said there are benefits galore for real estate developers. Within the next 12-24 months, international retailers will accelerate their entry strategy.
As a result, the developers involved in shopping centre development, who were badly hit since 2008, will also get a tremendous boost and we will witness serious players expanding in this space.
Over the medium to long term, the retail sector, real estate industry and the end consumers will benefit from the move and the economy on the whole will gain momentum, depth and size,” he said.