Home World Business Amazon gets nod to set food retailing shop, others hopeful

Amazon gets nod to set food retailing shop, others hopeful

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Firm to open a wholly-owned arm to carry out the business; Grofers, Big Basket next in line for nod

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After waiting for months, giant has got the in-principle approval for its foreign direct investment (FDI) proposal to set up food-only retail stores in India. While is the only company to have got the green signal as of now, sources in the government said that other applicants such as and would also receive approval in the next few days.

“After much discussion, we have decided to provide approval to Amazon’s investment proposal,” a senior Department of Industrial Policy and Promotion (DIPP) official said under condition of anonymity.

An official letter in this connection is expected to be dispatched to the company soon, he said. Sources said that and would also get the final nod in the next couple of days. As per the proposal, the company will open a wholly- owned subsidiary in India to carry out the business.

However as well as other are yet to get any communication from the government in this regard. “We are still awaiting an official communication from the ministry. We are excited by the government’s continued efforts to encourage in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision,” said an spokesperson.

Back in January this year, had filed its application with the Online players and also submitted proposals regarding retail trading of food items only.

In March this year, aiming to enter the food retailing sector in India planned to invest around $515 million over the next five years. Including and the government had received investment proposals worth $695 million for retail of food products.

Other are also hopeful of getting the nods soon. “We have been told that almost everything is done and we might get approval in the next few days,” said a senior vice president of one of the two e-grocers who had applied for approval.

Last year, in June, the government allowed 100 per cent in multi-brand food retail, including through However, the food products have to be produced, processed or manufactured in the country. The move till now has drawn little interest from international retail players so far who have complained that just having “food only” stores was not a viable option.

There have also been delays in getting approval. After dissolving Foreign Investment Promotion Board (FIPB) the decision on who would approve proposals in its absence – ministries and departments concerned was taken only in June.

Many of the have already selected space for stores and worked out the number of employees they would need. “The blueprint for our offline plan is ready; our back-end is in place,” a senior vice-president of one of these told this newspaper.

Amazon gets nod to set food retailing shop, others hopeful

Firm to open a wholly-owned arm to carry out the business; Grofers, Big Basket next in line for nod

After waiting for months, online ecommerce biggie Amazon has got the in-principle approval to the to the foreign direct investment (FDI) proposal to setup the proposed food only retail stores in India. While the government has just agreed on Amazon as of now, sources in the government said that the other applicants namely Grofers and Big Basket would also secure the nod in the next few days.”After much discussion we have decided to provide approval to Amazon’s investment proposal,” a senior Department of Industrial Policy and Promotion (DIPP) official said under condition of anonymity. An official letter in this regard is expected to be dispatched to the company soon, he said. Sources said that Grofers and Big Basket would also get the final nod in the next couple of days. As per the proposal, the company will open a wholly- owned subsidiary in India to carry out the business.However Amazon as well as other are yet to get any communication from the government in this regard. “We are .

After waiting for months, giant has got the in-principle approval for its foreign direct investment (FDI) proposal to set up food-only retail stores in India. While is the only company to have got the green signal as of now, sources in the government said that other applicants such as and would also receive approval in the next few days.

“After much discussion, we have decided to provide approval to Amazon’s investment proposal,” a senior Department of Industrial Policy and Promotion (DIPP) official said under condition of anonymity.

An official letter in this connection is expected to be dispatched to the company soon, he said. Sources said that and would also get the final nod in the next couple of days. As per the proposal, the company will open a wholly- owned subsidiary in India to carry out the business.

However as well as other are yet to get any communication from the government in this regard. “We are still awaiting an official communication from the ministry. We are excited by the government’s continued efforts to encourage in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision,” said an spokesperson.

Back in January this year, had filed its application with the Online players and also submitted proposals regarding retail trading of food items only.

In March this year, aiming to enter the food retailing sector in India planned to invest around $515 million over the next five years. Including and the government had received investment proposals worth $695 million for retail of food products.

Other are also hopeful of getting the nods soon. “We have been told that almost everything is done and we might get approval in the next few days,” said a senior vice president of one of the two e-grocers who had applied for approval.

Last year, in June, the government allowed 100 per cent in multi-brand food retail, including through However, the food products have to be produced, processed or manufactured in the country. The move till now has drawn little interest from international retail players so far who have complained that just having “food only” stores was not a viable option.

There have also been delays in getting approval. After dissolving Foreign Investment Promotion Board (FIPB) the decision on who would approve proposals in its absence – ministries and departments concerned was taken only in June.

Many of the have already selected space for stores and worked out the number of employees they would need. “The blueprint for our offline plan is ready; our back-end is in place,” a senior vice-president of one of these told this newspaper.

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Subhayan Chakraborty and Karan Choudhury

Business Standard

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