The recent decision to open multi-brand retail to FDI is a welcome one as it will offer wider choice with better quality to consumers and bring in more business opportunities for SMEs, Mr Jay Galla, Chairman, CII Andhra Pradesh and Managing Director, Amara Raja Batteries Ltd, said
As investment into retail increases, the quality of products is expected to improve with greater transparency and easier monitoring of adulteration, counterfeit products and traceability. Further, with its ability to drive efficiencies and leverage scale, organised retail is expected to increase affordability for consumers, he said.
Besides, this development would allow the retail sector to build shopping facilities, comparable internationally, have a wider choice of retailers within the malls that can provide a greater choice and stock to consumers, Mr Jay Galla speaking on behalf of CII, said.
With large investments expected in the sector, global retailers would leverage Indian manufacturing base once they are allowed to set up local operations. There is stipulation of 30 per cent more buying from SMEs, particularly in India. As organised retail spreads, bulk buying from SMEs will increase thereby meaning more business for SMEs, said Mr Y. Harish Chandra Prasad, Past Chairman, CII Andhra Pradesh and Chairman, Malaxmi Infra Ventures (India) Pvt Ltd. The CII felt besides, organised retail and kiranas can co-exist. In fact, the wholesale cash-and-carry stores “Best Price Modern Wholesale” allows literally thousands of kiranas to flourish through access to quality, low-priced merchandise and produce, business training and much more.
Small retailers would increase their effort to enhance their customer proposition through steps such as adding new product lines and brands, better display, renovation of the store, introduction of self-service, enhanced home delivery, more credit sales, acceptance of credit cards, to name a few. All this will eventually benefit the consumer, the statement said.