Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Among 30 developing countries, India now ranks at Number 2 position in <a href="http://www.businessinsider.in/searchresult.cms?query=ease+of+doing+business&amp;sortorder=effectivedate">ease of doing business</a> index. 
 As per a study, ‘2016 <keyword id="451693" type="ORGANIZATION" weightage="20" keywordseo="Global-Retail-Development-Index">Global Retail Development Index</keyword> (GRDI)’, which ranks top 30 developing countries for <a href="http://www.businessinsider.in/searchresult.cms?query=retail+investment&amp;sortorder=effectivedate">retail investment</a> worldwide, India jumped 13 places up at number two post. 
 
The study, which is topped by China, also took <a href="http://www.businessinsider.in/searchresult.cms?query=GDP&amp;sortorder=effectivedate">GDP</a> growth and better clarity regarding <a href="http://www.businessinsider.in/searchresult.cms?query=FDI&amp;sortorder=effectivedate">FDI</a> regulations into considerations and these have helped India achieve a second ranking. 
 "India's strong ranking reflects foreigner retailers' increased optimism in its retail market and its vast growth potential. India has relaxed several key Foreign Direct Investment (<keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword>) regulations in single-brand retail and this has paved the way for multinational firms to enter the market," said Debashish Mukherjee, a partner with A T Kearney and co-head of the Consumer Industries &amp; Retail Products Practice for India and Southeast Asia. 
 
According to A T Kearney, a London-based business consultancy, India's retail sector has expanded at a compound annual growth rate of 8.8 per cent between 2013 and 2015, with annual sales crossing the USD 1 trillion mark. 
 
India has also become the world's fastest growing economy. That coupled with a large population base and the easing of FDI regulations in the sector has made it an even more attractive market, it said in the ranking. 
 
"We expect to see e-commerce to propel India's growth and make it a more attractive proposition. However, there are some challenges as well. India remains a challenging and complex market for foreign retailers, where understanding dynamics at the state level is important," Mukherjee said. 
 
(Image: Thinkstock)

India is now Number 2 in ease of doing business index

<ul class="summary-list"><li>US private equity firm <keyword id="6354544" type="UNKNOWN" weightage="60" keywordseo="kkr">KKR</keyword> will invest $755 million in <keyword id="58448" type="COMPANY" weightage="60" keywordseo="Reliance-Retail">Reliance Retail</keyword>, owned by <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>’s biggest company <keyword id="6355199" type="ORGANIZATION" weightage="60" keywordseo="reliance-industries">Reliance Industries</keyword>, for a 1.2% stake.</li><li>This is KKR’s second <keyword id="6355120" type="UNKNOWN" weightage="60" keywordseo="investment">investment</keyword> in Reliance Industries — in May it invested $1.5 billion in Jio Platforms, Reliance’s digital arm that includes India’s largest mobile network.</li><li>The new investment values Reliance <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">Retail</keyword> at 4.21 trillion rupees ($57 billion).</li><li>Reliance has courted investors about its retail arm in recent months, including Silver Lake and, reportedly, Amazon.</li></ul>US private equity firm KKR will invest $755 million in the retail unit of India's biggest company, Reliance Industries, <a href="https://www.ril.com/getattachment/006e6f9c-d074-4fa3-81e9-a74a7a841079/KKR-TO-INVEST-%E2%82%B9-5,550-CRORE-IN-RELIANCE-RETAIL-VEN.aspx">it said on Wednesday</a>. KKR's investment for a 1.28% stake in Reliance Retail values the company at 4.21 trillion rupees ($57 billion), Reliance said.This is KKR's second investment in Reliance Industries — in May, it invested $1.5 billion Jio Platforms, Reliance's digital arm, which includes India's largest mobile network.It means that investors have poured $1.78 billion into Reliance Retail within a month. Tech investor Silver Lake will invest <a href="https://www.ril.com/getattachment/ae325405-1207-4f86-8874-3f24111b2b16/Silver-Lake-to-Invest-%E2%82%B9-7,500-Crore-in-Reliance-Re.aspx">$1.02 billion</a> in Reliance Retail, it said on September 9, after making a <a href="https://www.ril.com/getattachment/2cc98337-9b5b-4896-817f-524a69097b53/Silver-Lake-to-Invest-%E2%82%B9-5,655-75-Crore-in-Jio-Plat.aspx">$1.35 billion</a> investment in Jio Platforms in May.As India's biggest retailer, Reliance Retail owns around 12,000 stores, including convenience shops, supermarkets, apparel stores, and electronics stores. Most are in India, but it also owns Hamleys in London — the oldest and largest toy shop in the world.It turned over around $20 billion in the year to March 2020, an increase of 27% on the year before. Reliance struck a $3.38 billion deal last month to acquire rival Future Group's retail business.<h3>Reliance lined up other investors</h3>Reliance Industries, controlled by Asia's richest man <keyword id="3820" type="PERSON" weightage="60" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, has been lining up investors for Reliance Retail in recent months.Reliance Industries <a href="https://www.businessinsider.com/india-reliance-retail-offers-amazon-stake-worth-20-billion-report-2020-9">offered to sell Amazon a 40% stake</a> in Reliance Retail in a deal that could be worth $20 billion, a source told <a href="https://www.bloomberg.com/news/articles/2020-09-10/reliance-said-to-offer-20-billion-stake-in-retail-arm-to-amazon?srnd=premium">Bloomberg News</a>. Reliance later called this "speculative" and <a href="https://www.thehindu.com/business/Industry/reliance-terms-reports-of-stake-sale-to-amazon-speculative/article32579297.ece">said</a> it "cannot confirm or deny any transaction which may or may not be in the works."It follows an investment drive for Jio Platforms, which includes India's largest mobile network operator as well as streaming services and a video-conferencing app. Reliance has received $20 billion this year from global investors, including Facebook, for Jio Platforms, and has approached many of those same firms about Reliance Retail, <a href="https://www.reuters.com/article/idUSKBN25R1U4">Reuters reported</a>.Reliance Retail and Jio Platforms launched <keyword id="35621" type="PERSON" weightage="60" keywordseo="e-commerce">e-commerce</keyword> platform <keyword id="8506093" type="UNKNOWN" weightage="60" keywordseo="Jiomart">JioMart</keyword> in May. It plans to expand beyond groceries and is becoming a major, fast-growing rival to Amazon and Walmart's Flipkart in India.

India's biggest retailer Reliance Retail is now valued at $57 billion, following a fresh investment from KKR

<ul class="summary-list"><li><keyword id="6355199" type="ORGANIZATION" weightage="60" keywordseo="reliance-industries">Reliance Industries</keyword> has offered to sell <keyword id="18635" type="CITY" weightage="60" keywordseo="Amazon">Amazon</keyword> a 40% stake in its <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">retail</keyword> arm in a deal that could be worth $20 billion, a source told <a href="https://www.bloomberg.com/news/articles/2020-09-10/reliance-said-to-offer-20-billion-stake-in-retail-arm-to-amazon?srnd=premium">Bloomberg News</a>.</li><li><keyword id="58448" type="COMPANY" weightage="60" keywordseo="Reliance-Retail">Reliance Retail</keyword> is <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>'s largest retailer, and owns more than 11,000 stores.</li><li>It also owns e-commerce platform JioMart, which is a growing threat to Amazon in India.</li></ul>India's <a href="https://www.forbes.com/global2000/#7aeb3d4f335d">largest company,</a> <keyword id="10926" type="CITY" weightage="60" keywordseo="Reliance">Reliance</keyword> Industries, has offered to sell 40% of its retail arm to Amazon for around $20 billion, <a href="https://www.bloomberg.com/news/articles/2020-09-10/reliance-said-to-offer-20-billion-stake-in-retail-arm-to-amazon?srnd=premium">Bloomberg News reported</a>.This deal would be <a href="https://markets.businessinsider.com/news/stocks/reliance-reportedly-mulls-20-bln-stake-sale-in-retail-unit-to-amazon-1029576696#">one of Amazon's largest-ever investments</a>. Reliance Retail owns e-commerce platform JioMart, a major, fast-growing rival to Amazon in India. In June, Amazon was reportedly considering buying a <a href="https://www.businessinsider.com/amazon-could-team-up-with-jiomart-in-india-2020-7">9.9% stake</a> in Reliance Retail, India's largest retailer by revenue. This followed an August 2019 report that said Amazon might acquire <a href="https://www.businessinsider.com/amazon-in-talks-to-buy-stake-india-reliance-retail-2019-8">a 26% stake</a>.Bloomberg's report, which cites a personal familiar with the matter, says no final decision has been made on the potential deal, and a <a href="https://www.reuters.com/article/us-reliance-investment-amazon-com/reliance-approaches-digital-unit-backers-to-invest-in-retail-arm-sources-idUSKBN2610V7">Reuters report</a> named Saudi Arabia's Public <keyword id="6355120" type="UNKNOWN" weightage="60" keywordseo="investment">Investment</keyword> Fund (PIF) and Abu Dhabi state fund Mubadala Investment Company as other potential buyers.Reliance Retail owns more than 11,000 stores, including convenience shops, supermarkets, apparel, and electronics. Most are in India, but it also owns Hamleys in London – the oldest and largest toy shop in the world.It turned over <a href="https://www.ril.com/DownloadFiles/Retail/RRL%20Annual%20Report%202019-20.pdf">around $20 billion</a> in the year to March 2020, an increase of 27% on the year before.Reliance has recently expanded into online grocery delivery. In May 2020, it launched JioMart from its subsidiary Jio Platforms, and it plans to expand beyond groceries, which would make it even more of a threat to Amazon. Amazon's investment in Reliance Retail could allow it to collaborate with JioMart, rather than compete.Reliance Retail is a subsidiary of the conglomerate Reliance Industries, which has businesses in the energy, petrochemicals, textiles, natural resources, and telecommunications sectors.It is led by billionaire Mukesh Ambani – Asia's richest man, with a <a href="https://www.businessinsider.com/india-jio-mukesh-ambani-global-international-sixth-wealthiest-person-2020-7?amp">$72 billion net worth</a>.Reliance has already raised $20 billion of investments so far in 2020. This includes Facebook investing <a href="https://www.businessinsider.com/facebook-invests-in-jio-india-mobile-internet-service-2020-4">$5.7 billion investment</a> into its mobile internet service, Jio Platforms, in April. This was followed by a <a href="https://www.businessinsider.com/google-invest-billions-india-telecoms-reliance-jio-2020-7">$4.5 billion investment from Google</a> in July — and together, Google and Jio have announced plans to produce and sell <a href="https://www.india.com/technology/reliance-jio-to-launch-10-crore-smartphones-this-year-report-4136110/">more than 100 million low-cost smartphones</a> in India to compete with Chinese firms. Reliance Retail also announced its acquisition of rival Future Group's retail arm in August, <a href="https://www.businessinsider.com/reliance-to-buy-future-groups-retail-arm-for-338-billion-2020-8">for $3.38 billion</a>, and on Wednesday announced a $1 billion investment from US private equity firm <a href="https://markets.businessinsider.com/news/stocks/reliance-reportedly-mulls-20-bln-stake-sale-in-retail-unit-to-amazon-1029576696#">Silver Lake Partners</a>, which took a 1.75% equity stake.

India's largest company, Reliance Industries, has reportedly offered Amazon a 40% stake in its retail arm for $20 billion

<ul><li>Competition heats up after <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> closes its $16 billion acquisition of <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li><li>Alibaba and <keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> are said to be eyeing large investments of their own.</li><li>Conventional retail and <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> players are coming together for a hybrid online-offline business model.</li></ul>A turf war is about to break out among Walmart, Amazon Inc. and <keyword id="163405" type="COMPANY" weightage="20" keywordseo="Alibaba-Group">Alibaba Group</keyword> as the retail giants make aggressive moves to expand into <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>. And it is highly likely that this will lead to a massive shakeup of the Indian retail space. Last week, Walmart said it had <a href="https://www.businessinsider.in/indias-competition-regulator-has-given-the-walmart-flipkart-deal-a-greenlight/articleshow/65337242.cms">closed</a> the $16 billion (₹1,118 billion) deal to buy the majority (77%) of Flipkart, India’s largest e-commerce company, following regulatory approval. This is Walmart’s biggest acquisition till date. In its aftermath, Alibaba and Amazon are said to be eyeing large investments of their own, according to media reports. Alibaba is said to be <a href="https://www.livemint.com/Companies/1mvbhDUjZd9khrSUroW5MM/Alibaba-may-invest-5-billion-in-JV-with-Reliance-Retail.html">considering</a> a $5 billion (₹350 billion) investment into a joint venture with <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, India’s largest retailer in terms of sales, in part to take on competition from Amazon and Flipkart. While Amazon, along with co-investors, is mulling an investment in the Aditya Birla Group-owned grocery chain, More, for an enterprise valuation between ₹45 billion and ₹50 billion. Alibaba has reportedly also held talks with other Indian retail chains including Future Retail. In the past few years, Amazon has pumped in over $5 billion into India, its fastest growing market. Amazon and Walmart have been in fierce competition in their home market, the US, for quite some time, while Alibaba and Amazon are head-to-head in China. Some fear that Walmart’s push into India could potentially have an adverse impact on the larger Indian retail space in the long term, particularly on the small brick and mortar retailers in the country. A nation-wide trade lobby group plans to protest the Flipkart acquisition by going on a nationwide strike in the coming months. Currently, over 95% of India’s consumer retail market remains unorganised, representing a huge untapped opportunity for organised retail chains. India has long restricted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> in multi-brand retail to protect local grocers but allows 100% foreign direct investment in e-commerce companies that use the “marketplace” model. It is currently considering bringing in regulation for the e-commerce space and according to a recent draft proposal, may allow 49% foreign investment in e-commerce companies that use the inventory model. Walmart in its recent statement said its future investments into India will be directed at supporting farmers, supply chain development and reducing food waste. Strategy shift: Going hybrid Walmart’s acquisition of Flipkart and Amazon’s interest in More are the latest examples of large retailers adopting a hybrid business model of offline and online after years of experts predicting the disruption of traditional retail by e-commerce companies. Alibaba and Amazon have recently been focusing heavily on offline and online in their home markets – Amazon with its acquisition of grocery chain Whole Foods and Alibaba’s ‘New Retail’ strategy, which combines e-commerce and conventional retail in China. That rationale appears to be flowing down into their India strategy as well, points out Mrigank Gutgutia, engagement manager with RedSeer Management Consulting. Amazon also owns a 5% stake in Indian brick and mortar retail chain Shoppers Stop. While the Walmart-Flipkart deal is certainly encouraging for e-commerce players, even after 10 years and 100 million shoppers, Indian e-tailers have thus far managed to penetrate only about 2.7% of the overall Indian retail market, indicating the pressure to diversify their reach, notes Gutgutia. “While e-tailers have got their growth mojo back, everyone is starting to realise that pure online models will only let them capture limited pie,” said Gutgutia. “There is a need for change,” he added. Overall, as Indian e-commerce market matures further, e-tailers are realising that pure discount-driven models are no longer going to work. “What is needed is genuine innovation to cater to specific traits and needs of Indian buyers -- especially in offline-heavy categories like fashion and grocery,” said Gutgutia. According to RedSeer, this multi-channel approach will become dominant among organised retail players in the coming years, particularly for e-commerce players. Other e-tailers who have ventured into offline include furniture retailer Pepperfry with its studios and fashion retailer Myntra's Roadster stores. Regardless of how the investment landscape pans out and who buys whom, and as competition gets more intense for existing e-commerce and offline retailers, ultimately shoppers and customers are expected to win. As for small retailers, Gutgutia says they could see a positive impact if they work on a partnership model with organised retailers.

Clash of the titans: Amazon, Walmart and Alibaba to battle it out in India

Offline retailers want a level playing field. They want 100% FDI in place of the current 51%. They reason that the current rate was fixed to only save small retailers. However, these sellers are anyway facing competition from e-commerce sites. 
 
The Retailers Association of India (RAI), the apex body for offline retailers has recently filed a petition in the Delhi High Court asking for uniform FDI provisions for online retailers. 
 
The current FDI policy for offline retailers comes with strings attached. They need minimum $100 million backend investment and 30% sourcing from small enterprises. State-by-State approvals are required, and FDI is only permitted in cities with a population of over 1 million. Most retail experts feel India needs less regulations, not more. 
 
“There has been the wrong discussion for far too long in India– the ownership of retail. It should be on how to make retail distribution more efficient so that transaction costs are reduced. The government should attract global investment to promote made in India products in the global market”, says Mr. Arvind Singhal, Chairperson of Management Consulting Firm Technopak. 
 
The Indian retail scenario is rapidly changing. E-commerce is biting into revenues of traditional retailers both in urban and rural sectors. This has been fuelled by increased consumer spending due to economic growth and lower inflation. Is it going to be that way? 
 
“Technology allows you to disintermediate. The prospect of having a physical store in rural India is not viable due to the limited number of customers. The only way there is e-commerce”, Singhal observes. 
 
So is this the end of offline retail? Not quite. Most experts feel competition is one of the hallmarks of any healthy market, and with growing competition, both online and offline retailers would have to evolve. It’s true. Most e-commerce companies want physical footprint, either for sales or support. Brick-and-mortar retailers are online as well. 
 
Would large scale foreign investment do away with smaller Indian retailers? Experts beg to differ. 
 
“There is no competitive advantage foreign companies enjoy over Indian sellers. They buy from the same vendors. There shouldn’t be fear in inviting international retailers who would ‘destroy’ manufacturers in India”, Singhal reminds. 
 
So what’s the USP of Brand India now that Modi is desperately pushing the ‘Make in India’ campaign across the globe? Well, India is one of the larger economies in terms of consumer spending. It has a fairly large youth population willing to spend big moolah. If the economy grows at 7-8%, the Indian market will double in the next decade; the country will remain a reasonably attractive country to invest in. 
 
To sum up, it’s party time both for investors and consumers. The former has buyers lined up, the later has a plethora of options on the table to choose from. 
 
(Image credit: SunrisePOS and pfsweb)

Allow entry to WalMart and let Flipkart and Amazon fight it
out with Reliance Retail and Big Bazaar

Top brick and mortar retailers have moved the <keyword id="6355014" type="ORGANIZATION" weightage="80" keywordseo="Delhi-High-Court">Delhi High Court</keyword> against the <keyword id="6357307" type="ORGANIZATION" weightage="80" keywordseo="Central-Government">Central Government</keyword>, demanding change in Foreign Direct Investment (<keyword id="44528" type="ORGANIZATION" weightage="60" keywordseo="FDI">FDI</keyword>) norms vis-a-vis eCommerce players in the wake of rapid growth of online shopping. 
 The case was filed by <keyword id="113282" type="ORGANIZATION" weightage="80" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword> (RAI), which represents top retailers such as <keyword id="44949" type="CITY" weightage="80" keywordseo="Future-group">Future Group</keyword>, Shoppers Stop and <keyword id="58448" type="COMPANY" weightage="60" keywordseo="Reliance-Retail">Reliance Retail</keyword>. 
 "We are demanding parity," said lawyer <keyword id="106922" type="PERSON" weightage="80" keywordseo="Abhishek-Manu-Singhvi">Abhishek Manu Singhvi</keyword>, who represents the country's largest lobby of organised retailers. 
 
This is the second such method adopted by physical retailers against the government in the past six days. The country's branded stores operators did not attend a meeting convened last week by the ministry of commerce and industry to discuss FDI in eCommerce. 
 Sales of brick-and-mortar retailers have declined after eCommerce companies such as Flipkart, Snapdeal and <keyword id="18635" type="CITY" weightage="80" keywordseo="Amazon">Amazon</keyword>.in have made major inroads into the retailing business in India by offering unprecedented discounts. 
 
While India bars FDI in eCommerce companies selling products directly to consumers, it allows foreign companies to operate the so-called eCommerce marketplace that lends its platforms for other companies to sell their products. 
 
"On paper, eCommerce can't have foreign direct investment. However, a whole lot of marketplaces are effectively retailing," Kumar Rajagopalan, chief executive at RAI, told the Economic Times. 
 
"It is a convenient method of saying they are marketplaces, but they can get as much FDI they want. So there is no level playing field in India," he said. 
 Flipkart and Snapdeal have attracted billions of dollars in funding by operating such marketplaces while US-based <keyword id="6391410" type="CITY" weightage="80" keywordseo="Amazon-com">Amazon.com</keyword> has set up a fully owned subsidiary here and has pledged to invest $2 billion in India. 
 
Physical retailers want a level playing field for both and want equal policies for both the offline and online channels. 
 
Analysts, however, say that even if India allows similar policies for both offline and online retailers, store operators can’t attract the kind of investor response as eCommerce. 
 
Even though India opened the retail business for global supermarkets in 2012 by allowing them to own up to 51% in local ventures, the showpiece liberalisation policy has discouraged a number of companies including clearance from state governments, mandatory 30% sourcing from small vendors and upfront investment of at least $100 million. 
 
Because of such conditions retailers have not been able to get any fund amid so many clauses. 
 
eCommerce companies have been spending millions of dollars in discounting products and large scale advertising to lure consumers, while physical retailers, which pay heavy rentals and have other establishment costs, say it's very difficult to compete with online retailers. 
 
(Image: Reuters)

Indian retailers have declared war against FDI and e-tailers. Know more

<ul><li><keyword id="18635" type="CITY" weightage="20" keywordseo="Amazon">Amazon</keyword> recently announced that it’s investing ₹27 billion in Amazon Sellers Pvt Ltd and another ₹1 billion in Amazon Retail <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> Pvt Ltd.</li><li>The <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> giant also spent another ₹35 billion towards expanding its food retail business in India. </li><li>While going head-to-head with <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword>’s investments in India, both competitors share concerns over India’s <keyword id="6752758" type="UNKNOWN" weightage="20" keywordseo="Draft-E-commerce-Policy">Draft E-Commerce Policy</keyword>.</li></ul>In the aftermath of Walmart acquiring Amazon’s primary competitor in India, <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the world’s largest e-commerce giant has <a href="https://www.livemint.com/Companies/8mRhajBBdUbcTJagSjKqFO/Amazon-invests-another-Rs-2700-crore-in-India-business.html">invested ₹27 billion</a> ($386 million) in its Indian operations. Despite being the largest e-commerce company on a global scale, it still lags behind Flipkart in the country. Therefore, the new infusion of capital isn’t as surprising as it is expected. The company will have to maintain its aggressive stance in the Indian market will the coming competition from Walmart. The company also invested an additional ₹1 billion ($14 million) in Amazon Retail India Pvt Ltd and another ₹35 billion ($500 million) to expand its food retail business in India. With the capital infusions combined, Amazon’s total investment over the years comes to around $4 billion. According to insights by paper.vc, investment was directed into Amazon Sellers Pvt Ltd which is the marketplace for sellers who wish to sell their products online, not only in India but internationally through the e-commerce platform. Friend or foes Initially, when Amazon came to India it made a promise of investing $2 billion (₹140 billion) in the Indian market. Come 2016, they met that target while pledging an additional $3 billion (₹210 billion) bringing to the total promised investment to $5 billion (₹350 billion). In comparison, the company’s authorised capital was a mere ₹15 billion (₹214 million) when the original pledge was made. This set the pace for the company’s growth in India. Now, with Walmart acquiring Flipkart, Amazon has a competitor with equally deep pockets and no plans of letting go of its newest acquisition anytime soon. After paying $16 billion to acquire 77% of Flipkart, Walmart stated it had plans of pumping another $2 billion into its Indian subsidiary. And all this was not without any drama. It was only on Thursday that the Competition Commission of India (CCI) finally <a href="https://www.businessinsider.in/indias-competition-regulator-has-given-the-walmart-flipkart-deal-a-greenlight/articleshow/65337242.cms">greenlit</a> the deal. But, despite their differences, both Walmart and Amazon <a href="https://www.businessinsider.in/amazon-walmart-seek-us-help-against-indias-new-draft-e-commerce-policy/articleshow/65228547.cms">have issues</a> with India’s Draft of the E-commerce Policy. They claim that if some of the proposals are actually implemented, the disruption to the supply chain would be immensely damaging. Reports claim that they’re also roping in the Trump administration to talk to Indian authorities about their concerns. The competition between the two companies in India, especially when they’re focusing on increasing their sales rather than their margins, has already begun to lead to uncertainty in the market. While they go head-to-head in the online space, offline retailers could be the ones who bear the brunt.

Amazon takes the fight to Walmart by investing another ₹27 billion in India

Debates – both politically motivated and economy-focused – might be raging in India regarding <keyword id="44749" type="ORGANIZATION" weightage="100" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> (<keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>) in the retail segment, but the <keyword id="44734" type="ORGANIZATION" weightage="100" keywordseo="Indian-Government">Indian government</keyword> is constantly paving the path for global majors to enter the <keyword id="47445" type="UNKNOWN" weightage="100" keywordseo="Indian-market">Indian market</keyword>. In its latest bid to attract foreign investment, the Foreign Investment Promotion Board (<keyword id="6360345" type="ORGANIZATION" weightage="100" keywordseo="FIPB">FIPB</keyword>) has given its nod to <keyword id="1130286" type="UNKNOWN" weightage="100" keywordseo="swedish-retailer">Swedish retailer</keyword> <keyword id="771163" type="COMPANY" weightage="100" keywordseo="Hennes-Mauritz">Hennes &amp; Mauritz</keyword> (<keyword id="150626" type="COMPANY" weightage="100" keywordseo="HM">H&amp;M</keyword>) who plans to open 50 stores across the country and <keyword id="47916" type="UNKNOWN" weightage="80" keywordseo="invest">invest</keyword> around Rs 700 crore under the single-brand retail format. 
 The FIPB approval will allow the world’s second biggest fashion retailer to set up a wholly owned subsidiary in the country, according to a government statement. Last year, the Indian government opened up the retail sector to foreign investors, allowing up to 51% <keyword id="405850" type="UNKNOWN" weightage="100" keywordseo="FDI-in-multi-brand-retail">FDI in multi-brand retail</keyword> and 100% for single-brand retail. The government eased the rules further in August this year to woo <keyword id="1965137" type="UNKNOWN" weightage="100" keywordseo="Global-chains">global chains</keyword> such as <keyword id="46675" type="CITY" weightage="80" keywordseo="Wal-Mart">Wal-Mart</keyword> and <keyword id="57606" type="COMPANY" weightage="80" keywordseo="Carrefour">Carrefour</keyword> although the FIPB, nodal body for monitoring <keyword id="396143" type="UNKNOWN" weightage="100" keywordseo="Foreign-investments">foreign investments</keyword>, had kept a stringent watch over some key deals. The FIPB can vet proposals up to Rs 1,200 crore and anything above that amount has to be referred to the <keyword id="120170" type="ORGANIZATION" weightage="80" keywordseo="Cabinet-Committee-on-Economic-Affairs">Cabinet Committee on Economic Affairs</keyword> (CCEA). 
 Interestingly, there is another Swedish retailer that has been quite active in the Indian market. The budget furniture chain <keyword id="6371031" type="COMPANY" weightage="100" keywordseo="Ikea">IKEA</keyword> was one of the first companies to receive an FIPB approval for its investment plans in May this year. IKEA is now planning to enter the country with an investment of around Rs 10,500 crore. But the company is yet to announce the location for its first store. 
 It is not difficult to understand why retail giants from all over the globe are targeting the Indian market. H&amp;M has strong interest in <keyword id="21718" type="ENTERTAINMENT" weightage="100" keywordseo="Asia">Asia</keyword> as the company posted rising profits in the September quarter due to its steady growth in this region. It recorded a third quarter net profit of $690 million, up 22% on the same quarter in 2012. Since India is the third-largest <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword> in the continent and home to nearly 1.2 billion people, it is evolving as one of the biggest consumer markets that no <keyword id="62791" type="POSITION" weightage="80" keywordseo="global-player">global player</keyword> can possibly ignore. 
 With the government seemingly doing its best to sweeten things up, global firms in India are looking at expansion as well. In November this year, UK retail giant <keyword id="46182" type="COMPANY" weightage="100" keywordseo="Marks-and-Spencer">Marks and Spencer</keyword> opened its largest Indian store in Mumbai, a joint venture with <keyword id="196796" type="POSITION" weightage="80" keywordseo="local-player">local player</keyword> <keyword id="58448" type="COMPANY" weightage="100" keywordseo="Reliance-Retail">Reliance Retail</keyword>. <keyword id="330888" type="COMPANY" weightage="80" keywordseo="MS">M&amp;S</keyword> also said in a recent announcement that it would be aiming to make India its second largest market by more than doubling its number of stores in the country to 80. That is quite heartening, to say the least. All we require now is a crystal clear, liberal and win-win approach (it should benefit both global and local partners) to pursue the FDI dream even further. 
 
Image: Wikimedia Commons

FDI
In Retail May Flourish More As One Of The Biggest Fashion Retailers Is Hitting Indian Shores

After failing to get a response from the central government over <a href="http://www.businessinsider.in/searchresult.cms?query=foreign+direct+investment+%28FDI%29+">foreign direct investment (FDI)</a> norms with e-Commerce players in India, brick-and-mortar retailers are going to approach the <a href="http://www.businessinsider.in/searchresult.cms?query=Delhi+High+Court+">Delhi High Court</a> once again. 
 "We did meet the government once and nothing happened after that. We will have to take a call as a group," said Kishore Biyani, founder of <keyword id="44949" type="CITY" weightage="80" keywordseo="Future-group">Future Group</keyword>, India's largest network of retail store chains. He said there should be clarity in the policy. 
 In their quest for parity in <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword> norms with <a href="http://www.businessinsider.in/searchresult.cms?query=e-Commerce+">e-Commerce</a> firms, which have attracted billions of dollars in overseas funding using the marketplace model, traditional retailers had already approached the court in May. 
 
They contend that while India bars FDI in e-Commerce firms that sell products directly to consumers, foreign companies are allowed to operate online marketplaces that offer a platform for sale of global brands, putting them at a disadvantage. 
 India allows 51% FDI in multi-brand retailing, with a whole host of conditions including 30% mandatory local sourcing and $100 million upfront investment. "We will wait for another few days but if it (the government) still doesn't get a clarified policy, we will have no other option than to go for legal recourse," said <keyword id="113284" type="PERSON" weightage="60" keywordseo="Kumar-Rajagopalan">Kumar Rajagopalan</keyword>, chief executive of the <a href="http://www.businessinsider.in/searchresult.cms?query=Retailers+Association+of+India">Retailers Association of India</a>. 
 
RAI, an industry body representing over 1,000 retailers, including Shoppers Stop, Reliance Retail and the Future Group, filed a petition against the government in mid-May asking for a level playing field in terms of foreign investment. 
 On May 21, the <keyword id="6355014" type="ORGANIZATION" weightage="100" keywordseo="Delhi-High-Court">Delhi High Court</keyword> converted the petition into a representation, directing the association to discuss the matter with the government, failing which they could approach the court again within four months. Since then, associations of mobile and footwear sellers have also filed similar petitions alleging FDI violations. 
 
Biyani had earlier said that India's physical retailers and the marketplace model operated by foreign funded e-Commerce companies in India are largely similar — the only difference is the process of smart accounting by <a href="http://www.businessinsider.in/searchresult.cms?query=online+retailers">online retailers</a>. He also said ecommerce companies are violating FDI laws "in the spirit and letter". 
 
Retailers say they will push the case in the Delhi court, once again highlighting how e-Commerce companies are allegedly circumventing India's FDI regulations. "e-Commerce is only supposed to translate the physical world into the Internet world and therefore deserves to be similarly regulated as commerce in the physical world," said Rajagopalan. 
 
"Though the outcome of ecommerce and retail in the physical world is the same, the treatment meted out by the government of India to the two retail segments in the same market is inequitable," he added. 
 
(Image: Indiatimes)

Flipkart and Snapdeal have one thing in common, but that’s irking the Govt!

French sports retailer <keyword id="19948511" type="General" weightage="20" keywordseo="Decathlon" source="keywords" meta.keywordsubtype="org" meta.entityname="Decathlon" meta.hostid="153" meta.entityid="Decathlon">Decathlon</keyword> on Wednesday said it will <keyword id="19954634" type="General" weightage="20" keywordseo="invest" source="keywords">invest</keyword> 100 million euros (around Rs 933 crore) in <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>, its one of the fastest growing markets, in the next five years to expand <keyword id="19992513" type="General" weightage="20" keywordseo="retail" source="keywords">retail</keyword> footprint and <keyword id="19914449" type="General" weightage="20" keywordseo="manufacturing" source="keywords">manufacturing</keyword> operations. The company expects its business to become double in next three to five years, said Decathlon India CEO Sankar Chaterjee. The company plans to have a network of 190 stores, having presence in over 90 cities in next 5 years as part of its expansion, he added. Besides, a handful of this would also be spent on enhancing the digital channel as per the omni-channel approach of the company. Decathlon will expand its manufacturing operations and increase sourcing from india for the local market and its global operations. Currently 68 per cent of the goods sold in India are locally produced. Besides, 8 per cent of Decathlon's global product range are also met through India manufacturing. "We are aiming to take the domestic manufacturing for Decathlon India to 85 per cent by 2026," Chaterjee said. Decathlon plans to add 10-15 new stores every year, accelerating online sales and increasing local sourcing as part of expansion. Decathlon Global Chief Retail and Countries Officer Steve Dykes said India now plays an important role for the company. "India is a unique and exciting market with numerous opportunities. We have commitments to accelerate our efforts in india to make societal impact to inspire more and more Indians to play," he said. Dykes further said Decathlon will explore new sales channels as B2B to increase its impact. "We have a potential for India to play more and more and their role in Decathlon research and design and processes, over 2 million people are engaged globally in sports activity with a Decathlon clay app, and we have a big commitment in developing a future talent that comes from India, he said. In March Decathhlon had said India is a "big priority" market and expects it to be among its top five global markets within five years. SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-gained-over-3-million-subscribers-in-june-vi-lost-nearly-a-million/articleshow/112670406.cms">Reliance Jio and Airtel gained over 3 million subscribers in June, Vi lost nearly a million</a> <a href="https://www.businessinsider.in/tech/mobile/news/the-iphone-pro-models-will-be-made-in-india-for-the-first-time-this-year/articleshow/112653019.cms">The iPhone Pro models will be made in India for the first time this year</a> <a href="https://www.businessinsider.in/stock-market/webstories/orient-technologies-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112646237.cms">Orient Technologies IPO – Price band to risk factors, all you need to know</a>

You Searched For "retail investment in india" and got 10 results

India is now Number 2 in ease of doing business index

BI India Bureau

India's biggest retailer Reliance Retail is now valued at $57 billion, following a fresh investment from KKR

Grace Dean,Reuters

India's largest company, Reliance Industries, has reportedly offered Amazon a 40% stake in its retail arm for $20 billion

Grace Dean

Clash of the titans: Amazon, Walmart and Alibaba to battle it out in India

Rimin Dutt

Allow entry to WalMart and let Flipkart and Amazon fight it out with Reliance Retail and Big Bazaar

Saikat Pyne

Indian retailers have declared war against FDI and e-tailers. Know more

BI India Bureau

Amazon takes the fight to Walmart by investing another ₹27 billion in India

Prabhjote Gill

FDI In Retail May Flourish More As One Of The Biggest Fashion Retailers Is Hitting Indian Shores

Sanghamitra Mandal

Flipkart and Snapdeal have one thing in common, but that’s irking the Govt!

BI India Bureau

Decathlon to invest 100 million euros in India in next 5 years to expand retail, manufacturing

PTI

Popular Keywords

Buying Guides