Amazon, Grofers to invest $695m

New Delhi, March 23

The government has received investment proposals from three companies, including Amazon and Grofers, worth $695 million for retail of food products in India under the new FDI policy.

"Three companies Super Market Groceries Supplies (Big Basket), Grofers India and Amazon Corporate Holdings have submitted their proposals for seeking permission to make investment of $695 million over a period of time," an official statement said today.

The government had last year allowed 100 per cent FDI for marketing, including through e-commerce, of food products manufactured and produced in India.

Earlier in the day, Food Processing Minister Harsimrat Kaur Badal announced that Amazon has decided to invest about $500 million in e-retail of food.

"We allowed 100 per cent FDI in trading of food products last year. We have got some good news. Amazon has now decided to get into e-retail of food. Amazon has decided to invest close to $500 million in the food retail sector. It is a good news for the country," Badal told reporters here.

Amazon is keen on food retailing through online portal as well as brick-and-mortar outlets, she said.

Besides Amazon, she said Grofers and Big Basket have also submitted FDI proposals for undertaking retail trading of food products, while Metro Cash & Carry has also shown interest in food retailing.

Asked about allowing non-food products in the FDI policy, she said the government will take a decision on this issue soon. Some foreign retailers have demanded that India should allow sale of home and personal care products. — PTI