?Badal to raise issues of allowing foreign food retailers to sell other items also

FDI in Retail

BY - Franchise India Team
Editor Feb 28, 2017/

154

/ 3 MIN READ.

?Badal to raise issues of allowing foreign food retailers to sell other items also

Food processing minister Harsimrat Kaur Badal said that when she gets to discuss matters with prime Minister Narendra Modi, she will raise the issue of allowing foreign food retailers to sell other items also.

The government last year allowed 100% foreign direct investment (FDI) in food retailing, but dropped plans to include some general merchandise, such as soaps and shampoos, in the policy. Retailers have been pushing for an easing of this policy.

Badal said, "I will first be meeting global players — retailers, food processing companies, machine manufacturers, logistics providers— and consolidate a list of issues they have over the next 6-8 weeks. This I will take up with the ministries concerned and then the Prime Minister. Our prime minister is quick to take decisions."

Badal said, "Already there is a lot of interest among global companies to invest in India. However, they feel that we should allow non-food related items too as it happen worldwide. The non food items can be 'Made in India' products. This will generate employment, considering that 65% of population is under the age of 35 and is looking for jobs."

At the meeting, the minister invited the diplomats for a global food expo to be held in Delhi in November. The minister said it could be a win-win situation.

She added, "If it (FDI) creates jobs and increases revenue, it's a win-win situation. The government is seriously looking at this issue and whatever will be the outcome it will be positive."

The minister said that most of the issues faced by global players will be sorted by the time the World Food India 2017 fair is held on November 3-5.

Badal said, "For the first time, a mega international food event will take place which will showcase investment opportunities in India's growing food processing sector. It will facilitate companies to engage and strengthen linkages and opportunity for partnership. There is huge opportunity for companies to come and invest in India, considering that we have ample raw material-- fruits, vegetables, milk, meat etc available in abundance."

Ingredient Supplier

MTR aims government's approval for single-brand retail

BY - Franchise India Team
Editor Jul 01, 2016 / 2 MIN READ

To augment its business, the renowned food company, MTR is waiting for government’s approval to step into single-brand retail segment. The company which is the subsidiary of Norwegian association Orkla is a 92-year old firm which deals in providing high quality spices and ready to eat vegetarian food to its customers. The Bangalore based firm is now looking to scale up its production to 72,000 tons by 2020.

Recently, the government has amended the Foreign Direct Investment Policy (FDI) and as per the reformed norm, a single entity can opt for wholesale or cash-and-carry trade, as well as single brand retail if it fulfills FDI regulations for both the business. Any manufacturer in India would not need government approval to sell through wholesale, retail or ecommerce, as per the revised norms.

Commenting on the company’s move, Sanjay Sharma, CEO, MTR Foods said that company’s application is more of clarificatory nature since the new FDI norms state that if MTR is manufacturing in India it is free to sell through single-brand retail. Pickle and papad are the two items that company outsource locally, rest is all manufactured by MTR.”

Mavalli Tiffin Rooms (MTR) was acquired by Norway's food major Orkla in 2007 for US $80 million. Orkla has invested Rs 230 crore to triple the company's manufacturing capacity to 45,000 tons as of 2015. Since our owner is now a foreign entity, we felt it was better to apply for the single-brand licence as the rules are now more clearly spelt out, Sharma stated further.

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