Financial Daily from THE HINDU group of publications
Friday, May 13, 2005
Financial Daily from THE HINDU group of publications Friday, May 13, 2005 |
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Marketing
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Retailing Industry & Economy - Foreign Direct Investment Wal-Mart plans `significant' investments, to raise sourcing — Seeks opening up of retail sector Our Bureau
New Delhi , May 12 US retail giant Wal-Mart is upbeat on India. Not only does the company want to substantially scale up sourcing from here, but also it has sought opening up of the retail sector for making "significant" investments. The Wal-Mart International President and CEO, Mr John B Menzer, on Thursday held a series of meetings with senior Government officials, including the Prime Minister, Dr Manmohan Singh and the Commerce Minister, Mr Kamal Nath. ``We had a good meeting with the Prime Minister. We hope change will be there in FDI policy and we are allowed to come in,'' Mr Menzer told newspersons. Later in the evening, he was closeted with the Commerce Minister for an hour, but decline to make any comments after the meeting. Earlier in the day, he said Wal-Mart wanted to ``invest significantly'' in India for opening stores, apart from continuing outsourcing from the market. Asked if the world's biggest corporate entity was open to investing if the Government allowed FDI up to 26 per cent, which would require it to come through a joint venture, he said, "We have to look at the market and what the Government offers.'' Mr Menzer allayed fears that opening of the sector for international players would mean closure for small and medium-size Indian retailers. ``Indian economy is fantastic... there is room for everyone.'' He said India was a very attractive market for Wal-Mart for sourcing products, the fastest-growing export market for Wal-Mart globally. He said Wal-Mart had sourced goods worth $1.5 billion from India last year. ``We expect a 30 per cent increase this year,'' pointing out that India's low-cost operation was a big attraction. Because of the restriction on FDI, other global retailers such as Britain's Marks & Spencer Group, Dairy Farm International Holdings Ltd and Dubai-based Lifestyle International have set up shop in India through franchise arrangements or joint ventures.
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