Unfazed by the tie-up between the world's biggest retailer Wal-Mart with Bharti Enterprises, Reliance Industries Chief Mukesh Ambani welcomed on Monday the development and said the Indian market had enough space for more companies.
The Indian retail market has space for at least six to eight large players, Ambani said at the India Economic Summit, when asked whether the partnership between Bharti and Wal-Mart could pose a challenge to the Rs 25,000-crore (Rs 250 billion) ambitious plans of Reliance group in the retail segment.
Asked whether foreign direct investment should be allowed in multi-brand retail format, he said it should be permitted as the sector offered immense potential. FDI was welcome as the retail potential was real, he said, adding it could not be captured by any single large company or multi-national
corporation.
Ending months of speculation, the Bharti group, the country's biggest telecom company, announced on Monday tying up with Wal-Mart for its retail venture.
The retail segment had the potential to aid not only in India's economic growth but also provide employment opportunities, Ambani said.
One of the biggest opportunities from retail was that it would create purchasing power, even at the bottom of the pyramid, he said.
As many as 10 to 15 million jobs would be generated over the next three to five years due to the explosion in retail sector, Ambani added.
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