The Indian government is finally taking concrete steps to allow foreign direct investment (FDI) of up to 51% in multi-brand retail stores. According to the new proposal, the plan is to open FDI on the same line as the existing framework for single-brand retail. Currently, FDI in single-brand retail is allowed up to 51% and 100% in the cash and carry model.
Also read India to free up retail sector to foreign investors: Report Kishore Biyani, Founder and CEO, Future Group talks about the impact an FDI policy may have on the retail business. Below is a verbatim transcript of his interview with CNBC-TV 18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: First, one word on all this talk about FDI and retail and whether you sense that there are things moving on the fast track and there can actually be some kind of announcements soon?A: We have been hearing lately much more positive things than earlier. But I think policy decisions definitely take time and we are expecting something to come by. Q: How have you positioned yourself in case FDI does get allowed? I mean, there is some talk in the market that you have restructured your group in a way that you can capitalize on this move if the policy does open up. Can you just take us through what you have done to capitalize on it?
A: We have various formats of business. We have Pantaloons, Central and Brand Factory (we take them together), Planet Sports, HomeTown and Ezone. Then there is value retail which is Big Bazaar and KB's Fair Price. So we have created a subsidiary which is housing Big Bazaar and all the value retail fashion in Big Bazaar, Food Bazaar and KB's Fair Price.
We are looking at an option of wherever we want to dilute to bring in that company down as a subsidiary. So that
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