Major French retailer Auchan is considering a foray into the US$450bn Indian market in a joint venture with Dubai-based group Landmark.
Any moves to enter India, however, will depend on whether or not it eases current restrictions of foreign investment.
While the government had indicated it would allow up to 51 per cent Foreign Direct Investments (FDI) in the country, plans were shelved in light of widespread protests against the move.
Reuters has reported Auchan and Landmark may sign an agreement and then wait for India to eventually open up its retail sector to FDI.
Landmark currently runs Dutch retailer Spar’s operations in India, but the deal will expire this year, and according to a report in the National, will not be renewed.
'Our partnership with Spar International has been very fruitful and mutually beneficial. However, this agreement is expiring at the end of 2012,” Hariharan Ramanathan, a director at Landmark Group told the National. “We have aggressive growth plans, and hence are evaluating various options on the way forward. The final decision will be taken keeping in mind the rapidly changing retail market and our customers' requirements,” he said.
'All decisions we make are based on ensuring we bring the best value, products and service to them. At this stage, we would not like to comment on any reports relating to a discussion with any party including Auchan,' he told the National.
No comments yet