Amazon seeks nod to sell online food products produced, manufactured in India
- Network18 reports Q3 net profit of Rs12.7 crore
- Workers at Apple supplier Catcher Technology describe harsh conditions in China’s Suqian
- This year’s corporate space race: Getting ready for astronauts, then tourists
- Super-premium liquor to become cheaper in Karnataka
- Amaravati: core infra to be ready by year-end
New Delhi: Global e-commerce giant Amazon has sought government’s approval for online retailing of food products produced and manufactured in India. The US-based company has proposed to invest about Rs3,400 crore for the purpose, people aware of the development said, adding that the application is being considered by the commerce and industry ministry.
As per the proposal, the company will open a wholly-owned subsidiary in India to carry out the business. It will stock food products and sell online. When contacted, the company said in a statement: “We are excited by the government’s continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision.”
It, however, declined to comment on the investment details. Currently, the government permits 100% foreign direct investment (FDI) in the food processing sector. As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.
Amazon currently operates an e-commerce marketplace in India and competes with the likes of Flipkart and Snapdeal. Though the regulations allow 100% overseas capital in such platforms, these entities cannot sell products themselves. Amazon has been bullish on India, introducing new features for customers and sellers, even as the region continues to weigh heavy on the US-based company’s finances.
It has also been aggressively investing in areas like marketing and promotions and expanding infrastructure in India. Betting big on the burgeoning e-commerce market in India, its chief Jeff Bezos had said the company will invest $3 billion in India, taking its total investment committed here to over $5 billion.