French-based hypermarket chain Auchan is considering an investment in India's multi-brand retail segment, according to The Economic Times.
The company currently has 13 hypermarkets in India, under a franchise agreement with Max Hypermarket India.
The Times reported Auchan plans to open an additional 60 Indian stores, subject to the country’s policy on foreign direct investment (FDI) in multi-brand retail.
“The new regulations (on FDI) is a new issue for us,” Auchan Global chairman Vlanney Mulliez said.
“So, we are considering explaining our ambitions and seeking for some advice in order to address the best way this huge potential market.”
India allows up to 51 per cent foreign direct investment in multi-brand retail.
In line with the FDI regulations, foreign retailers entering the multi-brand segment must invest a minimum of US$100m, with 50 per cent of it in the back-end infrastructure.
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