Carrefour has been trying to break into India's $500 billion retail sector for years and hopes the wholesale outlet in New Delhi will lead to a string of hypermarkets for consumers .
“There is opportunity for growth here. We are working on the franchise concept for our retail operation. However, we will be a bit more cautious with our expansion here. We are studying the positioning of our competitors before we launch our own store,” Mr Jean Noel Bironneau, Managing Director Carrefour India said.
He said the company's first cash-and-carry store in Seelampur, a suburb near the Capital, will be housed in 55,000 sq feet area and will have over 30,000 stock keeping units including fresh vegetables and home products. It will source 90 per cent of its products from within the country and employ 300 people. The €86-billion retailer has been looking to enter India for the last eight years. The company will join the league of Bentonville-based Wal-Mart, German retailer Metro AG and British company Tesco, which also operate cash-and-carry ventures in the country.
The Indian regulations allow 100 per cent foreign direct investment (FDI) in cash and carry or wholesale ventures while 51 per cent in single brand retailing is permitted. However, the Government prohibits FDI in multi-brand retail.Speaking on the FDI regulation, Mr Birroneau said, “The FDI relaxation will help build capacity for local retailers. If there is a way we can operate hypermarkets, we will applaud the decision. We are waiting for the government's decision.”
When asked if the company had zeroed in on a partner for its hypermarket venture, he said, “We haven't decided on a partner.
Carrefour also expects its sourcing from India for its international operations to multiply significantly from the current $170 million annually.
.jpg)
Posts
Nice Post. Thanks for sharing the information about indian real properties. Indian Properties. I really liked it. I have bookmarked your post. I will also share it with my friends.
ReplyDelete