2. FDI
CAPS
SINGLE BRAND RETAILING
MULTI BRAND RETAILING
BACK END INFRA STRUCTURE
30% SOURCING NORM
3. Indian Government’s recent policy decision to allow Foreign Direct
Investment (FDI) of upto 51% in multibrand retail and upto 100% in
single brand retail.
Foreign investments in retail will have to go through Government
approval first
The policy mandates a minimum investment of $100 Mn with at
least half the amount be invested in back-end infrastructure,
foreign retailers will have to source a minimum 30% from the Indian
small and micro industry.
FDI is being allowed only in 53 cities having a population of over 1Mn
out of nearly 8000 cities/towns in India.
Finally in India’s federal structure, retail trade is a state level
regulation
4.
5. Walmart,Tesco, Carrefour and domestic
companies, sought further clarifications
on, sourcing rules for multi-brand
• Mexico anti bribery and Indian
investigations.
6. Cassin says the magnitude of
this law is far-reaching and its
enforcement by the US has
become stricter after 2008.
"If you go through the top 10
companies penalised, you
will see the magnitude," he
adds. "Executives have been
jailed for as many as 15 years.
In 2012, half of all criminal
penalties paid by
corporations were FCPA
cases."
7. "They are doing this to show
they are serious about the
FCPA and that they will not
take future decisions till they
put the current house in
order," he says. "A $450
billion company doesn't care
about a $500 million business
(India)." Adds a current Bharti
Walmart official: "The sole
aim is to bring down the fine
that is likely to be imposed
due to the bribery scandal in
Mexico."
8. "IfWalmart follows FCPA to
this extent, they will not be
able to do either wholesale or
retail in India,“
“Walmart's primary priority in
India was store expansion and
that the company operated in
the same way as any other
retailer in India. If FCPA was
so important, it should have
followed it in letter and spirit
from day one," he says.
9. In another case, Richard Leonard, a
British citizen and general manager
received a frantic call from a
colleague that KPMG executives
were trying to seize his desktop
computer and break open his
drawer. He immediately called
other colleagues, asking them to
stop the investigators from taking
possession of his workstation. On
his return to the office, Leonard
dashed off e-mails to his bosses,
includingWalmart's global head
Mike Duke, on how employees like
him have lost respect in the office
and they are being portrayed as
"criminals" by independent
auditors.
10. "No one knows why Raj had to
go," says the former Walmart
official. "He was a nice guy. His
only drawback was he was too
gentle and soft."The spate of
firings and exits are causing
consternation. "How would you
feel when you suddenly see that
your boss has quit the company
and won't come to office the
next day.A few days later, you
see your colleague's boss has
also gone in a similar fashion and
replaced by another who also
leaves in 10 days," says this
employee
11. KPG has educated about
2000 bharti walmart
officials about the FCPA
and its compliance
All key departments of
the indian operation-
including finance, legal
and compliance
personnel have begun
reporting to the US head
quarters
It is common for companies to place
a freeze on expansion. After all we
want to start with a clean slate.
