International cash and carry chains in the retail sector want to expand through the year in India, despite the economic slowdown and dip in foreign investor confidence.
Having no foreign direct investment (FDI) restriction, these wholesale chains are allowed to sell products only to retailers, professional users, caterers, institutional buyers and other businesses, which need special licences to buy from these outlets.
Walmart, the USD446-billion US retail giant, which operates cash and carry outlets in India in a 50-50 joint venture with the Bharti group, expects to open 12 to 15 wholesale outlets in 2012, against 10 in 2011. At an average cost of USD6-7 million per store, excluding land and construction cost, 15 outlets would mean an investment of anything between INR500 crore (INR5b, USD90.3m) and INR600 crore. With land and construction cost, total investment could double.
(Source: Business Standard )