News: Major retail stores can come with India-specific model

(BL 27/01/2007) Davos - The Government will allow the global retail majors such as Metro, Best Buy Co, Gucci and Tupperware Brand Corporation if they evolve India-specific models at the stage of entry as well as in their expansion plans. "The differentiation would have to be both at the stage of entry as well as in their subsequent operations and would necessarily have to be based on unique country characterisation," Ajay Dua, Secretary in the Department of Industrial Policy and Promo tion said in his session with the retail majors. Though the foreign direct investment in retail is not allowed, FDI can come through single-brand and cash and carry models. The US major Walmart has already announced tie-up with the Bharati Group through the cash and carry model besides the franchisee r oute. According to Bharati Group Chief and CII Vice President, Sunil Mittal the first of the Wal Mart-Bharati stores would open within this year. "If the global retailers expects to get a significant portion of the growing retail pie in the developing countries they would have to adopt different business models for each country, Dua said. • Newsmakers of the week: View Slideshow He mentioned that all markets of any significant size have concerns about safeguarding the existing retailers who, in the case of India, number about 15 million and provide employment to approximately 22 million people.