Amazon Becomes First Foreign Firm to Venture in Food Retail Business in India

Published By : 19 Feb 2018 | Published By : QYRESEARCH

With a pilot project in Pune, Amazon has launched its food retailing business in India, establishing itself as the first foreign e-commerce company to store and sell food products directly to people in this country. “Now Amazon has become a vendor on its own website, i.e. amazon.in, and is operating in Pune at present,” a source close to the company revealed. Amazon Retail India Pvt. Ltd is the seller of these food products.

Another source stated that it will take no less than a quarter for the e-commerce giant to launch its food retailing business across the nation. The firm secured the permission of the Indian government to invest US$500 mn in an entirely-owned venture to trade food products produced and packaged domestically through offline and online channels in the previous year. It is the only multinational entity to have applied for a food-only retailing business, a section where the Indian government permitted 100% overseas investment in 2016 in order to assist food item producers and to generate employment.

An Amazon India spokesperson, whose identity is being withheld on request, states that the company continues to be on track to roll out its food retail business in India. The development has come at a time when the global rival of Amazon, that is, Walmart, is in talks to procure a stake in Flipkart, India’s homegrown e-retail firm. In 2016, when India opened up to foreign direct investment (FDI) in food-only retailing business, Harsimrat Kaur Badal, the food processing industries minister, staged a roadshows in London to entice retailers such as Marks & Spencer and Tesco but the response was muted.

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