FDI is win-win for all stake-holders concerned: Biyani

Kishore Biyani, CEO, Future Group explains to CNBC-TV18 that it took some time for all the stakeholders to realize that it was a win-win proposal. Biyani added that FDI would boost the economy and encourage entrepreneurship in the country.

Below is an edited transcript of the reaction on CNBC-TV18.

  Q: You have been waiting for this to happen since November 2011 when the government decided to take the leap and then pulled back. Now are given to understand that FDI in multi-brand retail has been allowed?

A: I think it's a welcome step. I think it took people to understand and realise that it is a win-win proposal for all stake-holders. FDI will help in increasing consumption, manufacturing, enhance the services and the job sectors. In short, we will see the emergence of a modern India.

Q: How far are the negotiations with the government regarding the induction of foreign investors?

A: I think this will open up opportunities across our various business-arms and will catalyse the growth of entrepreneurship in the country. Q: So you may be in discussions with several investors across different verticals?
A: I believe that there will be more discussions after today’s policy initiative. Q: But where is the interest coming in from?
A: A lot of Asian retailers have shown interest. Q: There are rumours of interest from Walmart, Tesco and Carrefour?
A: I think the interest in the Indian retail sector is long-term due to the size of the market and range of business Only those who can invest over 20-30 years will be interested. Q: What are the apprehensions of the potential investors you have been talking to about the restrictions on being able to rollout only in cities with a population of over 1-million which works out to only about 53 cities and a mandated investment of USD 100 million, half of which will have to be invested in the backend? How are they reacting to the conditions and riders?
A: There were some conditions which were not seen favorable, I also think that all the conditions will have to be reviewed. So strategy will now evolve around how the policy will be implemented and the emergence of new retail models. Q: Given that the Centre has left it to states to implement the 51% FDI multi-brand retail, what parts of India do you think are ready to implement the decision ?
A: There would be some contentious states. I think it’s a political decision to look at pacifying various parties Q: Do you expect smart money to flow into India even before the Walmart-and-Bharti venture?
A: I think, as a company, that’s very crucial for us today. I think this will open up avenues for us to raise money. Q: Purely on the basis of your current capacity to absorb capital in whatever format it comes in, what is your capacity to absorb capital to enable the expansion?
A: I think we had an ambitious plans which were scaled down to 1 million - 1.5 million sqft because of resource constraints. I think we can play much smartly now across various formats and businesses. RELATED LINKS:

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