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Nokia supports more FDI in retail sector

Press Trust of India  |  Udaipur 

Supporting allowing of more foreign investments in the retail sector, Finnish mobile phone maker Nokia today said entry of multi-national retailers would not sound the death knell for kirana stores.

"Indian mom and pop stores [kirana] are extremely efficient compared to Western ones. So, will the mom and pop stores die because the big chains are coming? The answer is no...There is a enormous role for big chains to play," Nokia India Managing Director D Shivakumar said here.

He said kirana stores will continue to exist and thrive despite competition from organised retail stores because of the convenience factor.

"[The good thing] about kirana is that they can deliver at your home or if it cannot deliver, you can send your maid to [get the stuff]... So, the value that kirana stores offer cannot be offered by [any other] organisation," he said.

The government has decided to allow up to 51% FDI in multi-brand retail, while completely opening up the single brand segment, although it is facing political opposition.

Previously, only 51% FDI was allowed in single brand and none in multi-brand retail.

According to a latest study by CII and Boston Consulting Group (BCG) the current size of organised retail in the country stands at close to $28 billion or 6–7 percent of total retail. The total retail market is estimated to grow to $1,250 billion by 2020, of which about $260 billion would be organised retail.

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First Published: Thu, December 01 2011. 20:56 IST