RC Agarwal, chairman, Vishal Retail in an interview with CNBC-TV18 said, though the committee of secretaries (CoS) has proposed 51% FDI in multi-brand retail the company will await the final verdict of government. It would start approaching foreign retailers only after the final verdict comes in.
He said, "Now we are only a small company, we have only seven stores on board. We only have experience and that basis if any foreign retailer wants to tie up with us, we can go for it." Below is the verbatim transcript of Agarwal's interview with Reema Tendulkar and Ekta Batra of CNBC-TV18. Also watch the accompanying video. Q: The Company of Secretaries (CoS) have given its nod for that 51% FDI in multibrand retail, could you tell us for your company in particular are you in talks with some kind of investment to come into Vishal Retail? A: Right now we are only a small company we have only seven stores on board and let us see if we can get very specific retailers abroad, we can have a talk with them. As of now we only have experience and on the experience basis if any foreign retailer wants to tie up with us, we can go for it. Q: Are you already in negotiations at all? A: Right now no, we are waiting for the final verdict of government and when that comes we will start approaching foreign retailers. Q: So its fair to assume that you will be willing to offload around 51% is someone is interested if FDI in multibrand retail does come through? A: It all depends on who the interested parties are and what value they will bring into the company. Q: There has also been a couple of riders which the CoS has proposed, do you think that in maybe any way will be difficult and a hurdle for this FDI in multibrand retail to go through? A: This a hurdle because USD 10 million is a huge money for smaller companies. For small retailers its big money and they have to increase their size only then it will be possible to get the FDI. Q: So given what you are saying currently the size Vishal Retail is, itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
