French retail giant Carrefour announced yesterday that it will soon be opening its first Indian wholesale ‘cash and carry' store in New Dehli without the help of a local partner, AFP reported.
Indian foreign ownership laws currently permit foreign companies to only operate wholesale-format outlets without local backing, and if Carrefour wanted to open hypermarkets or supermarkets they would need an Indian partner.
US firm Wal-Mart has joined forces with India's Bharti group and UK retailer Tesco has partnered with the Tata Group.
'We are starting our 'cash and carry' business in India as the government allows 100 per cent foreign investment in this segment,' said Jean Noel Bironneau, general manager of Carrefour India.
Mr Bironneau said Indian foreign direct investment laws weren't 'relaxed' enough to allow foreign ownership of hypermarkets and supermarkets, and he said the cash and carry outlet was a cautious way for his firm to begin trading in India.
The New Delhi store will be 5,500m2, source 90 per cent of its products locally and employ 300 people.
