Group Members

Anita Chodankar Anuja Edgaonkar Ritu Haryani Vijay Kanal Khushboo Kosia Rachna Nair

02 12 15 20 22 27

Foreign direct investment (FDI) or

foreign investment refers to long

term participation by country A into country B. It usually involves participation in management, jointventure, transfer of technology and expertise..

Investment done by citizens and government of one country (home country) invest in industries of another country (host country).

Foreign Investment through

Foreign Direct Investments

Foreign Institutional Investors

Automatic Route

Government

No permission required

Approval /License required.

Barter system

Weekly market Village melas

Kirana Stores Conveni ence store

Government Stores

Super markets Hyper markets Malls Brand outlets

GRDI Position : 3rd Size : $ 400 billion Growth Rate : 13% GDP contribution : 12% Major sector : Food and Grocery Employment : 2nd largest industry (35.06 million) Types: Organized ( 5%) Unorganized ( 95%)

Single Brand Retailing Cash and Carry Model Multi Brand Retailing

51% 100% 0%

Cash and Carry Model

FDI in cash and carry (wholesale) with 100 percent ownership was allowed under the automatic route. It involves building of a large distribution infrastructure to assist local manufacturers First significant global player to enter India through this route was Metro AG of Germany.

FDI in Single Brand Retail

In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned that (a) only single brand products would be sold(i.e., retail of goods of multibrand even if produced by the same Manufacturer would not be allowed)

(b) products should be sold under the same brand internationally,

FDI in Single Brand Retail

(c) single-brand product retail would only cover products which are branded during manufacturing

(d) any addition to product categories to be sold under single-brand would require Fresh approval from the government.

FDI in Multi Brand Retail

FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof. Opening up FDI in multi-brand retail will mean that global retailers can open stores offering a range of household items and grocery directly to consumers in the same way as the ubiquitous kirana store.

Lifestyle plans to have more than 50 stores across India by 2012 13.

Shoppers Stop has plans to invest Rs250 Crore to open 15 new supermarkets in the coming three years.

Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million to add up to existing 2.4 million sq ft retail space. .

Timex India will open another 52 stores by March 2011 taking its total store count to 120

SKILLED WORKERS
INFLATION COMPETITION

TAXATION POLICIES

REAL ESTATE PROBLEM

PROBLEM IN RAISING FUNDS SUPPLY CHAIN MANAGEMENT

MARKET POWER

 Investment into warehouse and cold storage chain will result in significant efficiency on supply chain.
Farmers benefited through direct marketing and contract farming programme. Improves farm production through modern techniques.

Increasing availability of low interest credit for farmers.

Expected Growth
1.4 1.2 1 0.83 0.59 0.6 0.4 0.2 0.35
CAGR 10%

1.3

0.8

0
2008 2011 2013 2018

In the last four year, the consumer spending in India climbed up to 75%. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%. The total number of shopping malls is expected to expand at a CAGR of over 18.9 per cent by 2015.

Conclusion
Organized retail sector is an important sector. Government should support this sector not only by strengthening the Indian companies but also allowing the international players.

Government may allow FDI up to100% with conditions like local manufacturing, sourcing, and part investment in infrastructure.
The distribution network in particular needs to be strengthened. The development of road infrastructure, will bring efficiency in supply chain and reduce wastages.

THANK YOU