'We don't need foreign retailers'
Kishore Biyani, the man who is credited with pioneering the country's retail revolution, feels that the sector should be opened up for foreign investment in a calibrated manner. The government should frame guidelines for even the local players so that there is a fair competition, he says in an interview.
Q: Would you be interested in tying up with a foreign player for technical expertise as many retail players are now doing?
A: I do not think we need foreign players in retail. In fact I would be keen to tie up with an Indian player.
Q: So are you talking to some companies?
A: Not yet.
Q: What should be the government's policy towards foreign direct investment in retail sector?
A. What is the hurry? Government should adopt a calibrated approach towards inviting foreign investment in retail, and frame enough safeguards.
Q: What safeguards are you talking about?
A: There should be enough safeguards in place before the sector is opened up. Government should specify a minimum level of money which the foreign player should invest in the venture, as well as norms for location of the stores. Most importantly, even for local players, the government should have a competition act in place, and laws against predatory pricing to prevent selling below the cost price.
Q: Will the group foray into setting up luxury malls?
A: We have no plans to do so. Luxury malls need a different business environment and ambience, and it’s a niche business.
Q: With people's appetite for loans getting affected with higher interest rates, isn't it a bad time to get into consumer finance?
A: No, we feel that footfalls to our stores will translate into business for both the business segments. Future Money will initially finance up to 80% of the cost of purchase made by customers at Future groups' retail stores such as the Big Bazaar. It will later enlarge its portfolio by providing home and car loans. Our USP will be that the loan application will be processed within 24 hours, and that we are present at the point of consumption.
Q: What are the targets for the group?
A: We plan to achieve a turnover of $1 billion by June 2007. At present, it is $600 million. We are also scaling up investments, and by next year these will touch $1 billion.
Take care...
Kishore Biyani, the man who is credited with pioneering the country's retail revolution, feels that the sector should be opened up for foreign investment in a calibrated manner. The government should frame guidelines for even the local players so that there is a fair competition, he says in an interview.
Q: Would you be interested in tying up with a foreign player for technical expertise as many retail players are now doing?
A: I do not think we need foreign players in retail. In fact I would be keen to tie up with an Indian player.
Q: So are you talking to some companies?
A: Not yet.
Q: What should be the government's policy towards foreign direct investment in retail sector?
A. What is the hurry? Government should adopt a calibrated approach towards inviting foreign investment in retail, and frame enough safeguards.
Q: What safeguards are you talking about?
A: There should be enough safeguards in place before the sector is opened up. Government should specify a minimum level of money which the foreign player should invest in the venture, as well as norms for location of the stores. Most importantly, even for local players, the government should have a competition act in place, and laws against predatory pricing to prevent selling below the cost price.
Q: Will the group foray into setting up luxury malls?
A: We have no plans to do so. Luxury malls need a different business environment and ambience, and it’s a niche business.
Q: With people's appetite for loans getting affected with higher interest rates, isn't it a bad time to get into consumer finance?
A: No, we feel that footfalls to our stores will translate into business for both the business segments. Future Money will initially finance up to 80% of the cost of purchase made by customers at Future groups' retail stores such as the Big Bazaar. It will later enlarge its portfolio by providing home and car loans. Our USP will be that the loan application will be processed within 24 hours, and that we are present at the point of consumption.
Q: What are the targets for the group?
A: We plan to achieve a turnover of $1 billion by June 2007. At present, it is $600 million. We are also scaling up investments, and by next year these will touch $1 billion.
Take care...