51% FDI stake in retail to boost Indian sales of diapers & wipes
September 15, 2012 - India
Textile, apparels and consumer goods such as diapers, baby wipes and feminine care products will get a fillip due to yesterdays’ announcement by India on Foreign Direct Investments (FDI).
According to Press Trust of India, Union Cabinet headed by Prime Minister Dr. Manmohan Singh approved majority stake investment (51%) by foreign entities in multi-brand retail sector.
This announcement will boost the sales of textiles, apparels and consumer items such as diapers, baby wipes, etc. in 1.1 billion populated India and will pave the way for the explosion of consumer goods usage.
Although, the central government allowed major stake (51%) FDI in multi-brand retail sector, power rests with individual state governments to allow setting-up of retail outlets in their respective states.
Wal-Mart is already present in India via a joint-venture Bharti Walmart Private Limited. According to Walmart, its first Best Price Wholesale cash-and-carry outlet in India opened in 2009. As of this August, there are 17 such outlets in India.
According to Press Trust of India, Union Cabinet headed by Prime Minister Dr. Manmohan Singh approved majority stake investment (51%) by foreign entities in multi-brand retail sector.
This announcement will boost the sales of textiles, apparels and consumer items such as diapers, baby wipes, etc. in 1.1 billion populated India and will pave the way for the explosion of consumer goods usage.
Although, the central government allowed major stake (51%) FDI in multi-brand retail sector, power rests with individual state governments to allow setting-up of retail outlets in their respective states.
Wal-Mart is already present in India via a joint-venture Bharti Walmart Private Limited. According to Walmart, its first Best Price Wholesale cash-and-carry outlet in India opened in 2009. As of this August, there are 17 such outlets in India.