French retailer Auchan has signed a franchise agreement with India's Max Hypermarket to enter the country with its retail operations, Reuters reports.
Max, which is run by Dubai-based Landmark Group, operates 13 hypermarkets in India. These stores will be rebranded Auchan in the fourth quarter of the current fiscal year ending March 2013, the companies said on Monday (13 August).
Max and Auchan plan to open 12-15 new stores annually across India, they said in a joint statement.
In December, the Indian government backtracked on its decision to allow global retail chains to own 51 per cent in India's multi-brand retail sector after a huge political backlash.
Max Hypermarket India Ltd is controlled by retail and hospitality major Landmark Group. Landmark operates hypermarkets under the Max brand only in India and so it is not restricted under foreign ownership regulations.
Max Hypermarket had a partnership with Dutch food retailer SPAR international BV which ended earlier this year.
