Commerce and Industry Minister Anand Sharma has called a meeting of global retailers like Walmart, Tesco, Metro, Carrefour, Aushan and Indian companies on Thursday to clarify contentious issues related to investment in multi brand retail, which have made entry condition tough for foreign retailers into Indian market.
The Indian companies that have been called - are Pantaloon, Tata Group, landmark and Reliance retail and Adiya Birla. All the stakeholders have confirmed their presence to the ministry.
"Yes we have called a meeting with global retailers to sort out issues for investment in multi brand retail in the country," official sources from Department of Industrial policy and Promotion (DIPP) told The Pioneer.
"You have to wait till Thursday after that we will be in a position to let you know about the takers in FDI in multi brand retail, sources said when asked about why the policy has not been able to attract foreign multi brand retailers.
The meeting between the Government and retailers assumes significance as there has not been a single major foreign investment in the multi-brand segment, even after 10 months of allowing up to 51 per cent FDI in the segment.
"Global retailers like Walmart, Metro, Carrefour, Tesco and Aushan have confirmed their presence including Indian retailers like Pantallon, Tata Group and Relaince Retail," said one of the source.
"Industry chambers like FICCI and CII are also going to attend the meeting," source added.
The meeting is likely to be dominated by issues like definition of group companies, mandatory 50 per cent FDI investment in back-end infrastructure and 30 per cent sourcing from small and medium enterprises (SMEs).
The DIPP had sent invitation to 21 retailers including both global and Indian. Along with those mentioned above, the list included Kroger, Walgreen, Home Depot, Costco Wholesale Corporation, Schwarz Unternehmens Treuhand, and Aldi. Many of these companies have no presence in India.
US-based Walmart, which has cash and carry business in India through a joint venture with Bharti Enterprises, had asked the department of industrial policy and promotion (DIPP) as to what will constitute group companies.
The query was in relation to an April 2010 circular on cash and carry business which restricts businesses to limit their sale to group firms at 25 per cent of their turnover. The US retail major wants the cap to be raised to 40 per cent.