BackGlobal, Asian retailers interested in various formats in India: Biyani
Global, Asian retailers interested in various formats in India: Biyani
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Mumbai: India’s top listed retailer Pantaloon Retail, part of the Future Group, on Monday said global and Asian retailers are interested in various retail formats in India and the interest is not just in food retail.
On Friday, India took an important step towards opening up its $450 billion retail sector to foreign players such as US-based Wal-Mart.
Also Read | CoS backs retail FDI
A majority of members of a committee of top bureaucrats, set up to evaluate opening up the multi-brand retail sector -- or stores which sell more than one brand -- agreed to recommend to the Cabinet allowing foreign firms to take a 51% stake in such enterprises.
“Departmental stores, fashion, electronics, convenience, supermarkets, electronics and home improvement are all witnessing interest and its not just on the food side which has been talked about so much," Kishore Biyani, group chief executive and managing director told news channel CNBC TV-18.
While the interest in the hypermarket format is from the larger retailers in the world, Asian retailers have shown interest in departmental, electronics and home formats.
India currently allows 51% foreign investment in single-brand retailers and 100% of wholesale operations.
“Once the FDI policy is cleared, for the industry we can expect some transaction in the next six months," Kishore Biyani said.
Organized retail accounts for just 6% of the total in India, and is growing at an estimated 20% a year.
At 11.26 am, shares of Pantaloon Retail, which rose nearly 8% in early trade, was up 1.74% at Rs339 in a choppy Mumbai market.
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