| The Indian government has put on hold a proposal from Starbucks Corp. to open retail outlets in the country as the company hasn't provided complete information about its plan, reports Seattle Times, based on a story by the Associated Press.
Starbucks was among some 15 companies that applied to open stores in India after its government last year allowed foreign investment in retailing of single brand products.
Nine of those companies have got the government's approval while three were rejected. Proposals from three others, including Starbucks, are pending with the commerce and industry ministry, Industry Secretary Ajay Dua told reporters. "We have sought more details on the nature of the business they want to do and the nature of arrangement they want to have," Ajay said late Tuesday.
He said it wasn't clear from Starbucks' proposal if it wanted to open only coffee shops or also operate a chain of restaurants. "Once we have their response, and if we are satisfied, we will move the proposal to the FIPB (Foreign Investment Promotion Board) for clearance," Dua said.
Until last year, India barred foreign investment in any kind of retail stores. Last year, it partially eased the policy by allowing foreign investment in single-brand retail stores subject to an equity cap of 51 percent.
Full story on http://seattletimes.nwsource.com
An earlier story on delWine had reported that the first Starbucks store will be open in August this year in Mumbai in collaboration with Planet Retail. This might have to be postponed now-editor |
