News: Carrefour set to enter Indian market

(IBN 14/09/2006) Mumbai - The world's second largest retailer, France-based Carrefour Group is set to enter the Indian market.

Sources say the group has signed an exclusive franchise agreement with the $500 million Landmark Group to set up hypermarkets in India.

The Government's dithering on allowing foreign direct investment into the country isn't stopping the foreign retailers to get a slice of the Indian retail pie.

Sources have told TV18 that the French retailer, Carrefour is tying up with the Dubai-based retail group, Landmark for an Indian foray.

The duo will set up hypermarkets to sell an entire array of food and groceries, FMCG, apparel and electronics. A formal announcement is expected in 3 to 4 weeks.

When contacted, Landmark's director, H Ramnathan said, "We are in talks, but no comments on whether the deal has been finalised."

Currently, Landmark Group operates 10 lifestyle stores and 2 home stores across five cities. Last month, it has opened its first Max Retail store in Bangalore selling apparel, accessories and footwear. Landmark has also announced plans to launch hypermarkets and had booked properties in cities like Nagpur. Sources say the company will be looking to tap the same space for their French connection.

With the hypermarkets that Landmark sets up with Carrefour, it will enter food and grocery retailing, which is the fastest growing segment in India.