Blog: Dean BestIs investing in India all it's cracked up to be?

Dean Best | 21 November 2007

India remains a long-term prize in the ambitions of many food and retail multinationals.

This week, retail giants Carrefour and Metro have both spoken of their plans to expand in the country.

In recent months, the likes of Cadbury, Ferrero and Nestlé have unveiled plans to expand either their brand portfolios or manufacturing footprints in India.

The prize is India’s burgeoning middle classes, growing by the year and with rising disposable incomes to spend on Western-style goods in Western-style stores.

However, for all the optimism, foreign firms would be wrong to ignore the perils of operating in India. Overseas retailers are facing fierce opposition to their expansion. Sections of India are even against the growth of domestic retailers – just ask Reliance Retail.

And don’t be too pleased when you secure that (hopefully) lucrative contract with a local partner. Investing in emerging markets like India and China is fraught with unknown problems and what can at first seem a fruitful partnership can turn sour. Just ask Danone.


BLOG

just-food back up and running

To follow on from our earlier notice and after some hard work from our technical team, just-food is back live after today's power outage....

BLOG

Storm Doris causes power outage at just-food

Much of the UK has felt the impact of Storm Doris today - and just-food's head office has been no exception....

BLOG

Fyffes to face Ethical Trading Initiative disciplinary committee

A year after union officials alleged Fyffes abused workers on plantations in Central America - and called on the produce giant to be kicked out of the Ethical Trading Initiative forum - the company is...

BLOG

Could 3G Capital's next move be in foodservice?

Much of the chatter about where 3G Capital could look next has centred on packaged food - but might the private-equity fund be about to extend its foodservice empire?...

just-food homepage



Forgot your password?