No MNC rush likely yet

Dec 08, 2012 - Pawan Bali |

Age Correspondent

Companies, including American supermarket chain Walmart, UK’s Tesco, French chain Carrefour and Germany’s Metro, which already have some presence in India, are expected to move to open retail stores in India after FDI in multi-brand retail crossed its final hurdle, the Rajya Sabha.

“Companies which already have some presence in India might move quickly to open their stores in India. The others will take time to decide on their India strategy,” said Mr Mohit Bahl, sector head (retail), KPMG. However, there will be no immediate rush.
Ernst & Young partner and national leader (retail and consumer products) Pinakiranjan Mishra said it will take at least two years for the new MNCs to open stores.
“But we will be hearing announcements from these companies about their plans to open stores in India in the next six to 12 months,” added Mr Mishra.
Mr Bahl noted that foreign companies looking to invest in retail in India will now gain more confidence. “After this the political opposition will go down a bit, which will give foreign companies more confidence to move in,” he added.

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