Of FDI, Wal-Mart & controversies: An eventful year for retail
practices against it in foreign markets, including India. In March this year, the firm started a worldwide review of its policies, practices and internal controls for US Foreign Corrupt Practices Act compliance.
Following this, Bharti Walmart suspended five people, including Chief Financial Officer Pankaj Madan, as part of the global investigation. After this, the JV decided to put a halt on opening of new cash and carry wholesale stores in India pending the probe.
While Wal-Mart hit the headlines in multi-brand, it was IKEA that made news continuously in the single-brand segment.
The Swedish furniture announced plans to invest Rs 10,500 crore in India to open 25 stores over a period of time. It had proposed to invest 600 million euro (Rs 4,200 crore) to open 10 stores in the first stage.
The remaining 900 million euro (Rs 6,300 crore) for opening 15 more stores.
The Scandinavian retailer, however, wanted the government to relax the clause for mandatory sourcing of 30 per cent from MSMEs. After months of dialogue, the government relented and relaxed it for single brand segment.
The IKEA Group, which manufactures and sells home and office furnishing products, applied afresh after the norms were relaxed. In November, the Foreign Investment Promotion Board (FIPB), cleared the proposal but out of 29 products, the
company was prevented from selling 14 items like textile products, consumer electronics, leather products, lifestyle products and food and beverages at its restaurants and cafes.
However, IKEA has approached FIPB again seeking a review of its
