After Tesco, the second largest retailer in the world — Carrefour, is likely to move forward its application for investment in multi brand retail in India.
“Carrefour has shown its interest and likely to move forward its application. But it all depends how the Government respond to the application of Tesco,” sources familiar with Carrefour’s plans told The Pioneer.
The French retailer is engaged in talks with potential partners, including Kishore Biyani’s Future Group and recently held discussion with the K Raheja Corp-owned Hypercity, a subsidiary of Shoppers Stop ltd, for a possible alliance.
Earlier Tesco sent a proposal to the Government to invest $110 million in Tata Group’s Trent and run multi-brand stores in Karnataka and Maharashtra.
The Foreign Investment Promotion Board might take up the Tesco-Trent proposal by the end of this month.
Responding to a question, Shoppers Stop Managing Director Govind Shirkhande said that “I have nothing to comment on this issue as of now. We would be keen to consider a tie-up with International chain for Hypercity Once the FDI rules are clear.”
The Pioneer tried to approach Kishore Biyani for his comment on the same but despite several attempts he did not respond to our queries.
Recently Commerce and Industry Minister Anand Shama said that he is expecting another “European major” to apply for the multi-brand retail sector.
Many Indian retailers are keen on foreign investment but the policy rider issued earlier this year, that the mandatory $100 million investment must only fund new ventures, is being seen as a hurdle.
Domestic retailers are waiting for further clarification from the Government on investment in expansion of existing facilities.
Meanwhile, some senior officials of the Euro 76-billion Carrefour are expected to arrive soon from France, adding to the buzz that the chain has big plans on India.
Although the group had shut many stores across the world and exited some places, such as Malaysia, Singapore, Indonesia and Greece due to the economic slowdown or poor business, it recently made news for buying a portfolio of 127 shopping malls in France, Spain and Italy
The company is focused on Europe and key Asian markets a such as China.
At annual revenue of `190 crore in India as of December 2012, Carrefour has gone slow herein its cash-and-carry entry. It started its first India store in December 2010 and opened the fifth one in Bangalore last Wednesday.