Cabinet approves 51% FDI in multi-brand retail
The Union Cabinet on Thursday approved a proposal to allow foreign giants like Wal-Mart to enter multi-brand retail in the country. But the Centre’s move has drawn criticism from various opposition parties. In fact, even UPA allies like Trinamool Congress and DMK are apparently against the decision. In this context, Friday’s parliament session will be interesting after three days of near wash-out. The Cabinet has cleared up to 51% foreign direct investment (FDI) in multi-brand retail, and up to 100% FDI in single brand retail. At present, the Government allows up to 51% FDI in single brand retail, up to 100% in cash and carry (wholesale) business. FDI is not allowed in multi-brand retail currently. The Finance Ministry reportedly gave its consent to the draft Cabinet note on opening the multi-brand retail to foreign investment. The Department of Industrial Policy and Promotion (DIPP) had earlier circulated a draft Cabinet note to seek inter-ministerial views on the issue. Shares of retail companies like Pantaloon Retail, Provogue India and Shoppers Stop rose are yesterday on reports that the Union Cabinet will take up a proposal on allowing FDI in multi-brand retail besides considering increasing the FDI limit in single brand retail. The policy will allow foreign retailers to set up shop only in cities with a population of more than 10 lakh as per the 2011 Census. There are 55 such cities in India currently. Foreign investors will be required to invest up 50% of total FDI in back-end infrastructure, excluding the land cost and rentals. Retailers will need to source at least 30% of manufactured/processed products from small industries, excluding agricultural items. The Government has also retained the first right on sourcing agricultural produce. In terms of single-brand retail, the Government has made 30% sourcing from SMEs mandatory once the FDI limit exceeds 51%.
Ratan Tata successor - Cyrus Pallonji Mistry is unanimous choice
The wait is finally over. Cyrus Pallonji Mistry is all set to succeed Ratan Tata at the top job in Tata Sons. The selection committee has unanimously recommended Mistry's name. Cyrus Mistry was a director of Tata Sons and Tata Elxsi (India) and graduated from the Imperial College, London with a BE in civil engineering. He also holds a masters degree in management from the London Business School, and is a fellow of the Institution of Civil Engineers. Cyrus Mistry, 43, was named deputy chairman of Tata Sons yesterday and will succeed Ratan Tata when he retires in December 2012. Cyrus Mistry's father Pallonji Mistry is the biggest shareholder in Tata Sons with a stake of 18%. Pallonji Mistry has been a director of Tata Sons since 2006. Forbes & Co. is part of the multi-billion dollar Shapoorji Pallonji Group. Cyrus Mistry’s elder brother Shapoor Mistry is Chairman of Forbes & Co. Pallonji Mistry's daughter and Cyrus Mistry's sister is married to Ratan Tata's half-brother Noel Tata, who was also in contention for Tata group Chairman's post. In August 2010, the Tata group named a five-person panel, which included Cyrus Mistry himself, to look for a successor to Ratan Tata. The panel met 18 times, and when Cyrus Mistry became a candidate for the top position in the Tata group conglomerate, he excluded himself from deliberations. Cyrus Mistry will be the sixth chairman of the 143-year-old group, and just the second non-Tata chief. The Tata group was founded as a textile business in 1868 by Ratan Tata's great-grandfather, Jamsetji Tata. Tata Sons holds the bulk of shares in key companies, and trusts endowed by the Tata family own 66% of Tata Sons.
Cyrus Mistry statement on appointment as Deputy Chairman of Tata Sons
Cyrus Mistry appointment is a good and far-sighted choice: Ratan Tata
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