Future Group Chief:
India: New government must frame fresh policy on retail
Stating that India's regulations of the sector are out of sync with global practice, he said there is a need to redefine retail.
"We have to redefine retail in India. Nowhere in the world there is single brand retail and multi-brand retail," Mr Biyani said.
When asked about FDI in the sector, he said, "We should simply classify stores such as convenient stores, supermarket and hypermarkets and frame the policy accordingly. You allow or restrict foreign investments in which kind of stores you would like."
The BJP, which has got mandate to form the next government, in had said its manifesto that it will keep FDI out of the key sector of multi-brand retail.
"Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise," the party had said in its election manifesto.
The outgoing UPA government had relaxed FDI in retail by allowing 100 per cent FDI in single-brand retail and 51 per cent in multi-brand retail but with riders related to sourcing.
100 percent FDI is allowed in cash-and-carry business.
Future Retail, one of the largest retail chains in India, operates Big Bazaar, Food Bazaar, Ezone and Hometown stores.
Mr Biyani has been advocating liberalisation of retail regulations. In the past, Future Group has been linked with foreign retailers for partnerships.
The group has been restructuring its retail business for the past two years to cut debt and align its businesses. In November, the group sold its stake in apparel firms AND and Biba to private equity players. The company also sold its majority stake in Pantaloons to Aditya Birla Nuvo.
Source: ndtv.com