The Hindu : Business : Li & Fung looking at retail sector

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Tuesday, May 27, 2008
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Li & Fung looking at retail sector

Special Correspondent

NEW DELHI: Chinese conglomerate Li & Fung Group on Monday indicated that it was observing India’s logistics and retail sectors to expand its presence in the country.

“We will look at India for innovative designs and creativity. In the next three years we expect to more than double our sourcing from this country,” Li & Fung Group Chairman Victor K. Fung said on Monday on the sidelines of a function organised by the Federation of Indian Chambers of Commerce and Industry.

Engaged in distribution, retail, logistics, private equity and properties businesses, the group now sources consumer products worth $550 million from India every year for its global operations.

Scope for more jobs

Observing that this will also lead to an increase in the number of people being employed by the company, he said, “We directly employ 500 people in India, besides a large number of people indirectly. Increase in sourcing operations will also create more jobs here.”

On group’s plan to start its retail and logistics operations in India, Mr. Fung said, “Retail is an option which has been on our minds for long and another area is logistics. At present, we are studying the market here and evaluating options.”

Logistics operations

Mr. Fung, who will take over as President of the International Chamber of Commerce, said there is an emerging new paradigm of South-South trade and investments that is one of the most exciting phenomena of the 21st century globalising economy. “I will expect the current trend of rising Indian investments in IT in China will not only be sustained but increase significantly. This may also apply to other services industries.” Though many Asian economies are confounded by the challenges and threats of food crisis and environmental issues, he said the continent would continue to be a major force in the world economy and would generate a great growth and development momentum that should continue for at least the next two to three decades.

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