The Hindu : Business : Govt. examining Wadia's complaint against Danone

Online edition of India's National Newspaper
Saturday, Feb 03, 2007
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Business

Business

Govt. examining Wadia's complaint against Danone

Special Correspondent

FDI in retailing spurred by market growth potential

NEW DELHI: The Union Government on Friday said that it was examining a complaint filed by the chief of Britannia, Nusli Wadia, against the French retailer, Danone, for its alleged violation of Foreign Investment Regulation Rules for enhancing Danone stake in Wadia-controlled Britannia.

Immediately after concluding his inaugural address at an international summit on India's retail revolution, organised by the Associated Chambers of Commerce and Industry of India (Assocham), Secretary, Department of Industrial Policy and Promotion (DIPP), Ajay K. Dua said, "we have received a letter from Mr. Wadia, alleging that Danone violated stipulation of Press Note 1 of 2005 on foreign investment and foreign exchange regulations which are being examined with all seriousness.''

On the theme of FDI in retailing, Secretary, Communist Party of India, D. Raja, said, the Lefts had already warned the government that a retailer MNC like Wal-mart should not be permitted to enter India even as a joint venture partner as its track record in America and other countries has not been good.

He said retailing was a sensitive issue just as SEZ had been and therefore the Left would continue to oppose it until policy measures were adopted to suit the domestic industry, its people, particularly the downtrodden.

Dr. Dua clarified that retailing had become a profitable venture because of opportunities and the perception that was being built by corporates and not by a particular policy of the government.

He said corporates today think that retailing particularly organised retailing would grow at over 40 per cent. Even then barring apparel, not much of investments was coming into it.

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