Reliance Retail and Bharti Enterprises are understood to be in talks to buy India assets of the world’s second largest retailer Carrefour that has decided to exit the country by closing its five stores.
According to industry sources, the availability of ready-made cash and carry stores and associated infrastructure is drawing interest of the two leading Indian firms.
When contacted, Reliance Retail and Bharti Enterprises spokespersons declined to comment.
Similarly, Carrefour India regional director Frank Kenner declined to comment on talks regarding selling its India assets.—PTI
Mumbai Bureau adds:
On Monday, Carrefour announced that it would close its five cash & carry stores in India. The company, which is the second-largest retail chain in the world and the largest in Europe, has been operating in India since 2010.
In a statement on Monday evening, the company said the closure of its business in India will be effective at the end of September 2014. “Until that time, the company will continue to be fully engaged with all its employees, suppliers, partners and customers to ensure a smooth transition,” a statement from Carrefour said.
The company has reportedly invested Rs. 300 crore in its Indian operations. Its cash & carry stores are located in Delhi, Agra, Jaipur, Meerut and Bengaluru with the Bengaluru one having started operations in December 2013.
The Carrefour Group employs nearly 365,000 people globally with more than 10,100 stores in 34 countries. It generated revenues of 100.2 billion euros under banners in 2013.
India allowed up to 51 per cent foreign direct investment (FDI) in the retail sector in September 2012. However, to date only the UK-based Tesco entered the Indian market with plans to invest up to $ 140 million in a tie-up with the Tatas.
Industry watchers felt factors hindering the entry of more players could be the mandatory sourcing requirements from local small and medium enterprises and the fact that different states in India have the option to permit or disallow the entry of multinationals.
Carrefour, which has been operating in India since 2010, has stores in Delhi, Jaipur, Agra, Meerut and Bangalore.
