Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Fdi c4

556 views

Published on

  • Be the first to comment

  • Be the first to like this

Fdi c4

  1. 1. FDI in single brand and multi brand retail : By C4 :FDI in single brand and multi brand retail : C4 group BNA PPT
  2. 2. Indira Institute Of Management Pune FDI in single brand and multi brand retail Content 1 Government policies 2 Causes and Effects 3 Typical cases 4 References FDI in single brand and multi brand retail : C4 group BNA PPT
  3. 3. Indira Institute Of Management Pune Government policies  Details1. Single-brand with 100% ownership • Requirement that the single brand retailer source 30 percent of its goods from India.2. Multi-brand retail 51% FDI • Requirement brand retailer source 30 percent of its goods from India. • Needs approval from respective state govt. • Allowed only in cities where population is more than 10 lac. FDI in single brand and multi brand retail : C4 group BNA PPT
  4. 4. Indira Institute Of Management PuneCauses and Effects DetailsCauses1. Retailing in India accounts for 14 to 15 percent of its GDP.2. The Indian retail market is estimated to be US$ 450 billion3. One of the top five retail markets in the world by economic value4. Supermarkets accounted for about 4 percent of the industry FDI in single brand and multi brand retail : C4 group BNA PPT
  5. 5. Indira Institute Of Management Pune causes and effects Effects Benefit to government : organized retail1. Organized retailing, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.2. These include 1 the publicly traded supermarkets, 2 corporate-backed hypermarkets 3 retail chains, 4 and also the privately owned large retail businesses3 It increases revenue of Government FDI in single brand and multi brand retail : C4 group BNA PPT
  6. 6. Indira Institute Of Management Pune causes and effects Effects4 Better logistics, competitive shops, foreign expertise and technology.5 Help to bring down food prices6 Higher prices for farmers, and lower prices for consumers.7 Can be adverse for small retailers , mom and pop shop owners .8 70% material can be sourced from outside so it can cause the competition for Indian companies . FDI in single brand and multi brand retail : C4 group BNA PPT
  7. 7. Indira Institute Of Management Pune Typical cases IKEAOffer wide range of product s at cheaper priceProduct includes but not limited to1. furniture2. Childrens items: mammals, birds, adjectives3. Curtain accessories:4. Kitchen utensils:5. wall decoration, pictures and frames, clocks6. food productsplans to invest 1.5 billion euro (Rs 10,500 crore) in India to set up 25 stores. FDI in single brand and multi brand retail : C4 group BNA PPT
  8. 8. Indira Institute Of Management Pune Typical casesProblems faced by IKEA1. 30% sourcing from India2. Allowed Product range Diluted sourcing norms From sourcing of 30 per cent of requirements “mandatorily” from micro, small and medium enterprises (MSMEs) in India, to “preferable sourcing from MSMEs”. FDI in single brand and multi brand retail : C4 group BNA PPT
  9. 9. Indira Institute Of Management Pune Typical casesBharti Walmart Cashing on FDI loop holes1. Bharti Walmart, earned more than half its revenues in 2011 by selling merchandise to Bharti Retail.2. Bharti Retail, purchased goods worth Rs 1,095 crore from Bharti Walmart.3. This amounts to 58% of the joint venture companys total revenue of Rs 1,876 crore for the year.4. Department of Industrial Policy & Promotion had in 2010 barred these companies from selling more than 25% of their products to group companies.Deface from BhartiWalmartNo clear definition of group companies by Indian Government.Other issues , Lobbying money and sacking of Indian CEO FDI in single brand and multi brand retail : C4 group BNA PPT
  10. 10. Indira Institute Of Management PuneReferences http://www.economist.com/blogs/banyan/2012/09/indian-economic-reforms Business standard Wikipedia Economic Times FDI in single brand and multi brand retail : C4 group BNA PPT

×