BackRajan Mittal calls for 100% FDI in multi-brand retail
As Walmart closes in on a deal to buy out e-commerce firm Flipkart, Rajan Mittal calls for parity in rules that will allow foreign investment in offline and online retail
Premium
Mumbai: As Walmart closes in on a deal to buy out Indian e-commerce firm Flipkart, Rajan Mittal, whose joint venture with the same American supermarket giant failed in the past, is calling for parity in rules that will allow foreign investment in offline and online retail.
Speaking on the sidelines of the India Economic Summit in Mumbai on Saturday, Mittal said that Indian e-commerce firms with access to foreign capital is, in essence, FDI in e-commerce. This creates an unequal playing field for offline retailers.
On Flipkart’s possible acquisition by Walmart, Mittal said, “It’s good for big companies to come here, so they can put up logistics, (build) support on produce, food processing. I’ve always been a votary of this. I believe full FDI should be allowed in e-commerce, but also in brick and mortar."
In 2013, Bharti Enterprises and Walmart called off their Indian joint venture Bharti-Walmart that ran the wholesale chain Best Price Modern Wholesale. Walmart bought out Bharti’s 50% stake in the venture and now completely owns its Indian chain of wholesale stores. Bharti’s retail business with its easyday retail stores was later merged with Kishore Biyani’s Future Retail.
The current FDI policy allows overseas investors to hold a maximum stake of 51% in multi-brand retail.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
