fdi in mbr. amit dodwani

8/4/2019 FDI in MBR. Amit Dodwani

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Impact of FDI inMulti-BrandRetailing in IndiaPresented By : Amit Dodwani (03)

AMA PGPIBM2010-12

A Research Project on



Introduction

Current Scenario: FDI in Multi-Brand Retailing isnot allowed.

Passed by Commerce of Secretaries(COS)

Final policy formulation by Ministry of Commerce & Industry of India.

51% FDI allowed in Single Brand Retailing.



Literature Review

Indian retail market consists of Rs 12,80,000Crore($ 320 billion).

Growing at a pace of 9% per annum

79% of share is with 1.3 crore small retailers inunorganised sector

Unorganised retail sector in India has grown atover 15% per annum



Walmart

15 countries

Operates around8500supermarkets

Employing around20 lakh people.

It is in artnershi



Proposed Criterias forFDI in MBRApplying China’s model by allowing FDI inphases. Hence, Proposed to initiate with 6metro cities.

Min. 2000 Sq. Ft. Area.

51% FDI will be allowed.

50% investment must be at backendinfrastructure.



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1. Where do you source your good



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Q 2. Whose prices are cheaper?



0 2 4 6 8 10 12

Q 3. What is the % of price gap?



ation of small scale retailer has becom



Q 1. Do you feelsupermarkets affect

small shopkeepers?



Q 2. How far the no.of footfalls has

reduced aftersupermarkets came

into existence?



Q 3. How harshly hasit impacted on yourmark-up price?



Q 4. How badly has it

affected your overallbusiness activity?



Q 5. How will it affectyour business assupermarkets arebeing open up inmany small



Q 6. What are youropinions on allowingforeign players insupermarkets?



Key Findings

Volume Sales have decreased drastically.

Forced to give better service. (IncreasingCustomer Bargain Power)

Mark-up being reduced.

Mere sustenance is at stake



Positive Impact

To Consumers:

To Farmers:

To government:

To Society:

To small retailers:



Negative Impact

To small retailers:

To Government:

To the middlemen:



Recommendations

To Government:-

Norms need to be stringently followed as it is asensitive industry.

Separate official body to scrutinize.

To ‘Pop n Mom’ Stores:-

To maintain customer relationship strongly

Home service + Credit to known customers.



ConclusionCurrent era is known for Internet penetrationand Information Technology era.

After allowing FDI, it would be Multi-BrandRetailing Era.

Win-Win situation for both.

Can’t escape from WTO, US and world pressure,

allowing FDI is inevitable in long run.



Bibliography

http://dipp.nic.in/DiscussionPapers/RetailTrading_VN

http://online.wsj.com/article/BT-CO-20110722-7111

http://www.Moneyconrol.com

http://www.atkearney.com/index.php/Publications/at-kearneys-globalretail-

development-index.htmlGujarat Samachar

Business Standard

Economic Times

http://dipp.nic.in/DiscussionPapers/RetailTrading_VNPrasad.pdf

http://online.wsj.com/article/BT-CO-20110722-711110.html

http://online.wsj.com/article/BT-CO-20110722-711110.html

http://dipp.nic.in/DiscussionPapers/RetailTrading_VNPrasad.pdf



Thank You

fdi in mbr. amit dodwani

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