Cannot meet 30% sourcing clause from small industries: Wal-Mart
Hotline: 1800 102 2007
X
Search Business Opportunities
2013-07-24

Cannot meet 30% sourcing clause from small industries: Wal-Mart

The world’s largest retailer Wal-Mart has expressed its inability to the government on meeting the sourcing norm in the multi-brand segment that requires 30% procurement from small industries, stating it can procure only about 20%.

The world’s largest retailer Wal-Mart has expressed its inability to the government on meeting the sourcing norm in the multi-brand segment that requires 30% procurement from small industries, stating it can procure only about 20%.

 

According to sources, the representatives of the company had met department of industrial policy and promotion (DIPP) officials in the second week of this month and informed about the company’s stand on the contentious sourcing issue.

 

The Walmart India spokes-woman said, “We are still very early in the process on FDI but are excited by the opportunity in front of us. We continue to work with the government to better understand the rules that exist for FDI.”

 

As per the foreign direct investment (FDI) policy for multi-brand retail trading, at least 30% of the value of procurement of manufactured/processed products shall be sourced from Indian ‘small industries’.

 

Several global retailers have raised their concerns over the sourcing restriction.

 

In a meeting with commerce and industry minister Anand Sharma, the global chains have flagged the issue and have demanded to alter the condition to ‘preferably’ from ‘mandatory’ as in the case of single brand retail.

 

Although the government has permitted 51% FDI in multi-brand retail about 10 months back, no formal proposal has been received by the DIPP yet.

 

Related opportunities
  • Car wash / Ceramic Coating / Detailing
    About Us: Across the globe, 3M is inspiring innovation and igniting..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Women's clothing
    About: There is no doubt about the fact that India’s gen-next..
    Locations looking for expansion Karnataka
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 800
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • About WONDER KIDZ “The Concept School”: Products and Services: - Pre-School/Kindergart..
    Locations looking for expansion Madhya pradesh
    Establishment year 1999
    Franchising Launch Date 2006
    Investment size Rs. 5lac - 10lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bhopal Madhya pradesh
  • Extra Curriculum Activities
    Do you seek India’s transformation by building the strong curriculum..
    Locations looking for expansion New Delhi
    Establishment year 2010
    Franchising Launch Date 2015
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Central Delhi New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts