Another Western retail power may be on its way to India’s enticing market soon, with France’s Carrefour in advanced talks with India’s largest retailer and owner of the Big Bazaar supermarket chain, Future Group.
The talks could result in a cash-and-carry wholesale joint venture, similar to that between Wal-Mart and the Bharti Group, and the Tata Group and Tesco.
The discussions were reported by three unnamed sources with knowledge of the developments, according to India’s Economic Times.
The talk have been focused on forming a major supply-chain entity for all the Future Group stores, meaning significant cost-cutting for the company.
There are cultural similarities between the two companies that may pave the way for a successful partnership, the Economic Times quoted its sources as saying.
Carrefour’s six years of previous efforts to enter the Indian market have been unsuccessful. The country’s fledgling organised retail market is seen as a juicy price by the international retail giants, but local foreign ownership legislations limits their activities to the kind of joint venture in discussion by Carrefour, and in practice by Tesco and Wal-Mart.
Future Group, meanwhile, has previously expressed a desire to expand its business, and a link-up with Carrefour would give it the funds to do so.
Both companies are keeping mum on the topic, and refused to comment to the Economic Times.
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