India: Govt asks Amazon to separate food biz from flagship marketplace

India: Govt asks Amazon to separate food biz from flagship marketplace

Photo: Mint

The government has directed Amazon to keep its food-only retailing business separate from its existing flagship marketplace business, says a report in The Economic Times. This has been done as foreign firms are not allowed to sell products to consumers directly, added the report.

On Monday, the government cleared Amazon’s $500 million (Rs3,225 crore) food retailing proposal, but asked the company to maintain a separate management and offices for the new venture, said the newspaper, citing an unnamed source. The company got the approval only after several riders were issued by the government, which includes having separate boards, staff, bank account and inventories, added the report.

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