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Thread: How Wal-Mart got a foot in the door of India's retail market: Reuters

  1. #46
    Moderator Colonel gracefulguy's Avatar
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    Quote Originally Posted by ignoramusenator View Post
    He is starting one of the biggest mall in Cochin. Not sure but it will open this year.

    But man; there is another side to this story.

    In Abu Dhabi, Govt is closing down over 1000 groceries; and they are paving ways to bring smaller lulu chain.
    Now big shark ate all the small fishes and 1000 families have to look elsewhere. (by end of this month, no more small groceries here)

    Similarly;

    Now walmart starts in towns with over a million population; later on they will try to get into smaller towns too.

    Like; small cars are sold in india more than bigger cars; they will make JVs with local supermarkets and start selling lower price than anyone initially; and after some more time; they will decide what is the price of all possible day to day items.


    Ok, lets set aside the prices they will offer (its still not even decided if they will be cheaper or expensive ) , logistical improvements , safeguarding or removal of the middlemen, selling outdated products.......etc etc.

    The bigger question.....and also the diff between doing business in AUH and India........is the Raw Material.

    The total production of fruits and vegetables in the world is around 370 MT.

    India ranks first in the world with an annual output of 32 MT fruits, about 8% of the world’s fruit production...........also is the second largest producer of vegetables (ranks next to China) and accounts for about 15% of the world’s production of vegetables.

    Also, the diverse agro-climatic zones in the country make it possible to grow almost all varieties of fresh fruits and vegetables in India. Still we get more expensive fruits in India than UAE.....which doesnt produce anything .

    Wall Mart is a 400 billion dollar company........enough to buy out whole of vegetation including fruits vegetables pulses. which india produces every year.

    Our interest is investment from Walmart...........and as I questioned somewhere in the same thread before.........where does these investments go ???
    It goes into the Raw material...!!!

    Now, what is the harm if the invest in raw material ??

    It simply ruins the current arrangemnt of how we export and how we import.......!!!!

    There has been a commission report in Chennai by some Mr Ramakrishna (??) dont knw the name..........to alter the Sugar policy.
    Sugar units tillnow have been directed to keep 10% of production at a price much lower than the market......they also chekc out and decide how much sugar can be exported by each sugar producing unit.

    All this is going to be scrapped. This will hit the prices directly. Not only on Sugar , but other commodities as well. For example, Rice...which cannot be exported for less than 1000 dollars a ton.

    All these actions from the govt suggests..........common shud be ready to shell out more.............inspite of the fact ...........that we produce one of the best in quality and one of the largest in quantity...!!!!
    "I'm always ready to learn although I do not always like being taught"

  2. #47
    SB Champion Captain gunsnroses1979's Avatar
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    Quote Originally Posted by ignoramusenator View Post
    Simple logic; simple example..

    China mobile have 700 million subscribers; which is China state owned.

    BSNL have 90 million subscribers. considering 1 billion indians and assuming 80% use mobiles; the rest of the subscribers are privatized; indian govt earns no direct profit from private companies they only get RENTALS.

    Another example; in under developed states in india; example; how do they make bridges ? they have already privatized this sector; so investment comes from japan or china or any other country. not only bridges; water; irrigation, drainage, roads etc.

    Now; govt do not have to spend money for building this; they get loans from outside; and then some goes to party fund, some is gone to ministers own pocket, then they will take the lowest bid and make a bridge.

    Now, after completing this bridge, you will hear the term TOLL, i hope you know this. this is a payment collected from end users; which is comman man.

    I believe the bid now goes to local lobby; whom collects tolls everyday, for years and years; this is decided by the foreign bank of company who aided the fund to build it.

    As years pass, new bus routes comes, new developments comes and the users increases; making it a highly profitable business. the local lobby and the foreign company makes doubles or tripples their money; bcuz the earlier agreements with the govt will be based on years of toll collection. and comman man is looted as the govt is not ready to build it themselves or collect the toll. (if govt collect toll that will be another bandh or strike thats another matter)

    Its easy way to privatize all and watch the show; anyone could do this; but the end of suffering is always from the common man.

    I also do not believe that more jobs are generated by retail outlets; bcuz; the amount of employees works in well advanced hypermarkets are less is compared to smaller supermarkets who is not well equipped with technology.

    And obviously private foreign companies are not going to spend their profit in india; they will take it elsewhere. Here you will have your economy which depends on investments going down with your own faulty laziness.

    I agree with you. I can see after 20 years from now....
    Wal-Mart in every city in India selling all Chinese goods (except for vegetables and food grains which will be sufficient enough to fulfill its 30% Indian goods commitment with the government) and slowly slowly we Indian will find more and more American style products in their stores and our Indian style products will slowly disappear and one day our Indian culture will also disappear.............

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