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Indian Retail Industry: More Technology & Logistic Investments Needed
Jun 20, 2007

More investments in cold-chain infrastructure, technology & logistics are needed by Indian retail industry.

Buildings & construction is not the core of retail industry. Kamal Nath, India's Commerce & industry minister, made these remarks on November 27 2006 at India Economic Summit, organized by CII (Confederation of Indian Industry) & World Economic Forum, as per the news published in Daily India.

The announcement comes with news of JV (Joint Venture) plans of Bharti Enterprises & global retail giant Wal-Mart for exploring retail opportunities in the country. Both firms signed MoU (memorandum of understanding) on November 27 2006.

Earlier, businesses were more concerned about investment opportunities in India but businesses are now feeling more upbeat in India. The country is on its way to high but inconsistent growth, as bureaucracy has reduced & many industries are now welcoming private funding, including overseas investments.

The minister also said that India would follow policies aimed to invite more foreign competition, easing the concerns of investors.

Hans-Joachim Koerber, Metro AG's CEO said that they agree on the way the economic reforms are going in India. However, there's some disagreement over the speed by these reforms are going.

Metro & other retailers like Wal-Mart, Carefour & Tesco have been waiting for nearly four years to get hold of Indian retail industry where yearly purchases by consumers totaled to whooping US$ 129 Billion last year.

A retail industry expert at
RNCOS said, "Awareness of technology is low in Indian retail industry, which has resulted in bad decision-making among the retailers. Retailers need to start using advanced IT systems as soon as possible. For instance, use of CRM (Customer Relationship Management) & OLAP (On-Line Analytical Processing) software will help in management of customer information & can help in making permanent customers."

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