One of the global leaders in retail, Walmart, is keen to retail processed food in India after the government relaxed foreign investment norms, a top official indicated. Food Processing Secretary A K Srivastava said over US$ 1 billion FDI has come in food processing sector during the last two years and with the government now permitting 100 per cent foreign investment in marketing of processed food produced and manufactured in India, “Walmart is showing lot of interest”. Also, a leading Brazilian poultry company has expressed interest in joining hands with Kishore Biyanis Future Group to sell their products in the country, he said but did not identify the company or give details.
“The government this year announced 100 per cent FDI in the retail trading of food products produced and manufactured in India. Now this, we hope, will give a big boost to the food processing sector. Walmart, which previously had tied up with Bharti Group to enter retailing in India, is already showing lot of interest. Now we are hoping that they will come on their own and they will add to the growth story of this country,” said Srivastava.
“We recently had meetings with all the ambassadors of the important countries and we have asked them to give this message to their food processing players. We have meeting with industry associations. We have informed them about this initiative. We have asked them to bring players who can invest in India,” he added.
The official said a Brazilian company “claiming to be world’s leading exporter in poultry sector” met them and wants to tie up with Biyanis Future Group to use their retail outlets. However, when contacted, a Future Group spokesperson said there is no such development.
The US-based Walmart is present in the cash-and-carry retail format in the country.
Some of the major investments received in the last two years include Linde Group investment of US$ 200 million in seafood segment in Andhra Pradesh; US-based Mondelez International has inaugurated its new manufacturing plant in Andhra Pradesh. This plant has been set up with an investment of INR 1,265 crore with an annual capacity of 250,000 tonnes. Mars International India, a leading chocolate maker, has invested US$ 114.63 million in Pune. With a total investment of US$ 33.96 million, Kelloggs unit in Andhra Pradesh provides job to 500 persons. The company is also planning to set up an R&D facility and their third cereal facility in Mumbai.
Major investments in the last two years by domestic companies include Patanjali Ayurveda. The company is planing to set up INR 500 crore food processing unit in Madhya Pradesh. The state has cleared 400 acres of land for this. It is expected to provide jobs to about 700 people.
(PTI)