Saturday, February 24, 2007

AS Watson defers plans to come to India

AS Watson, the Kong Kong based retailer which is part of the Hutchinson Whampoa company said that it will not be entering the Indian retail sector as long as the government has restrictions on FDI in retail. At present the government allows only 51% FDI in single brand retail and 100% in cash-and-carry wholesale, and the AS Watson company has interests in a variety of fields, including health and beauty, food and grocery, electronics and even airport retail.
“We are waiting for FDI in retail to be allowed in India as we would like to hold at least 51% equity in our India operations. The franchisee route is not for us,” Watsons Personal Care MD Krish Iyer, who is on a India visit currently, told ET.

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