Amazon seeks Govt nod to venture into food retail in India

The US-based company has proposed to invest about Rs 3,400 crore for the purpose, people aware of the development said, adding that the application is being considered by the commerce and industry ministry. As per the proposal, the company will open a wholly-owned subsidiary in India to carry out the business. It will stock food products and sell online. When PTI contacted Amazon on the same, Amazon wrote in a statement: “We are excited by the governments continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision.” It, however, declined to comment on the investment details. Currently, the government permits 100% foreign direct investment (FDI) in the food processing sector. As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online Amazon currently operates an e-commerce marketplace in India and competes with the likes of Flipkart and Snapdeal. Though the regulations allow 100% overseas capital in such platforms, these entities cannot sell products themselves. Amazon has been bullish on India, introducing new features for customers and sellers, even as the region continues to weigh heavy on the US-based companys finances. It has also been aggressively investing in areas like marketing and promotions and expanding infrastructure in India. Betting big on the burgeoning e-commerce market in India, its chief Jeff Bezos had said the company will invest $3 billion in India, taking its total investment committed here to over $5 billion. To get latest insights on food business and more such articles subscribe to FoodService India TAGSAMAZONFDIFLIPKARTJEFF BEZOSSNAPDEAL Previous article Connected Shoppers Report: Insights into the expectations of todays empowered shoppers Next article E-commerce food businesses cannot run without licence: FSSAI Avatar Indiaretailing Bureau RELATED ARTICLESMORE FROM AUTHOR Indian online Kidswear Market: Comes out of infancy stage, registers growth Indian Online Kidswear Market: Comes out of infancy stage, registers growth Amazon India most desired internet brand: Survey Amazon India most desired internet brand: Survey Amazon shows market understanding with new cashierless grocery store, says GlobalData Amazon shows market understanding with new cashierless grocery store, says GlobalData