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

UK regulator shines light on Amazon's Deliveroo investment

Amazon's move to invest in UK food-delivery business Deliveroo caught the eye when it was announced in May – but it’s also attracted the attention of the country’s competition regulator....

BLOG

Amazon tries again in UK food delivery

Perhaps today's most eye-catching corporate food story here in the UK is Amazon's decision to invest in food-delivery business Deliveroo....



Forgot your password?