News: Carrefour plans 'tactical buyouts'

(DNA 26/01/2007) Mumbai - This should be music to the ears of local retailers who want to partner foreign majors. French retail giant Carrefour is seeking "tactical acquisitions" in India and Russia, CEO Jose Luis Duran told French newspaper Le Figaro on Thursday. The comments come just as Duran is winding up his three-day relationship-building tour of India and clearly show that the company is interested in the Indian market despite its break-up with Dubai-based Landmark earlier for an entry here. Duran told the newspaper that after reorganising the international unit, "we can look to new countries like Russia and India. We favour tactical acquisitions and are no longer considering large transactions like the Carrefour-Promodes merger." Does this mean Duran's current visit is meant to scout for "tactical" acquisition targets? According to industry experts, Carrefour may be interested in setting up operations in India but may not jump in at the first available opportunity. "Yes, Duran has met several industry captains and top government functionaries in India during the current visit. But this may really mean nothing - Carrefour CEOs have made three quiet visits to India over the last 12-18 months and have yet not decided whom to partner for India," said an expert. According to industry buzz, Duran may have paid a visit to top honchos at the A V Birla group and Godrej Industries, besides commerce and industry minister Kamal Nath. Despite several attempts, Carrefour India officials could not be reached for comments. Duran's visit could also be for checking out the small and medium food and grocery retailers, many of whom want to sell off businesses at a high premium in a bullish market. Also, the progress of Reliance Retail couldn't have escaped Duran's notice. Reliance, which launched only on November last year, has spread its network to many cities where it operates not only food and veggies stores but also the cash & carry wholesale format. The world's second-largest retailer after Wal-Mart, Carrefour, thrives on four formats: hypermarket, supermarket, hard discount and convenience stores. In the interview, Duran said Carrefour plans to open at least 100 new superstores this year and operating profit for 2006 would meet forecasts.