Carrefour, the French retailer, plans to enter the Indian market by establishing a wholesale business. The Indian economy is one of the fastest growing in the world, with an increasing middle-class. However, unlike China, India’s growth has been fuelled by consumer spending, a fact that has caught the attention of foreign retail giants. However, restrictions on foreign retailers have meant that they have had to find a different route to enter this fast growing market.
Carrefour joins Wal-Mart (NYSE: WMT), and Metro AG from Germany, which have started cash-and-carry ventures in India. “Carrefour will develop its activities in India with the start of cash & carry activities in 2010," the company said in an email statement to Reuters.
Indian law allows foreign retail firms to have franchise agreements with local players, and Carrefour has been in talks with local firms for 4 years now. "Carrefour and some Indian companies have been discussing partnerships," the company said, but would not to comment on which firms it had spoken with.
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