Amazon to invest over $500 million in e-retail food in India, says Minister of food processing
E-commerce giant, Amazon will finally enter the online retail segment in India, Harsimrat Kaur Badal, Minister of food processing, said in New Delhi on Thursday.
Bloomberg sources quoted Badal who said that the US based e-commerce company planned to invest close to $500 million in e-retail of food.
India’s food processing sector was growing at 7.2% a year and Amazon was considering creating national food grid comprising cold chains and mega food parks, Badal added.
Shortly after, Amazon's Director of Public Policy, Ramachandra said that the company will invest $515 million in India over a period of five years.
He further said that ‘METRO Cash & Carry’ also has plans to invest in food retail in the South Asian nation.
A week ago, Amazon put out an emailed statement which read, “We are excited by government's continued efforts to encourage FDI in India for a stronger food supply chain. We have sought an approval to invest and partner with the government in achieving this vision.”
For its food-only outlets that the company was seeking government approval for would garner investments that would mount to be Rs 3,500 crore over the next five years.
Presently FDI in multi brand retail trading, in all products, has been permitted however the caveats to the norm has been termed as difficult by the companies.