FDI in retail will do away with middlemen, says Carrefour | business | Hindustan Times
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FDI in retail will do away with middlemen, says Carrefour

business Updated: Oct 04, 2012 00:02 IST
HT Correspondent

Even as political storm over foreign direct investment (FDI) in multi-brand retail refuses to die down, the global giants of retail have applauded the government for its “decisive step”.

The world’s number two retailer Carrefour in a letter to commerce and industry minister Anand Sharma lauded him for the decision and expressed “whole hearted gratitude.”

“We believe this is a very positive move that will benefit the Indian farmers and consumers effectively in the long run,” wrote Jean Noel Bironeau, managing director of Carrefour in his letter to Sharma.

A couple of days back, world’s largest retailer Wal-Mart had expressed happiness over government’s move to liberalise foreign investment norms in multi-brand retail.

A fortnight ago, the government had notified the policy allowing 51% FDI in multi-brand retail paving way for retail giants such as Carrefour, Walmart and Tesco to set shops in India.

Carrefour’s letter supporting the government’s move is an endorsement of the reforms process, said a senior official in the ministry of commerce.

“FDI in multi-brand retail is a win-win situation for all. The only ones to lose out will be the middlemen who corner away all the profits under present circumstances,” he said.

Carrefour already runs two cash-and-carry wholesale stores in India and had held talks with Kishore Biyani-led Future Group for a possible stake in the company.