Industry news
Future Group admits JV talks with global retailers
Last updated: 16 February 2010
Indian conglomerate Future Group has
confirmed that it is mulling the formation of a joint venture with a
number of international retailers. US behemoth Wal-Mart operates a cash-and-carry JV with Bharti Enterprises, while the UK's Tesco has established an Indian presence in collaboration with Tata Group. Meanwhile, Germany's Metro Group operates wholesale stores independently in the market.
“We are in talks with different retailers for a possible tie up,” a spokesperson for the group told just-food.
However, Future has remained coy over the identities of these unnamed global players.
The
confirmation follows long-running speculation that the Indian
groceries-to-finance giant could be preparing to announce a tie-up with
French retailer Carrefour through its retail unit Pantaloon Retail.
Carrefour has said that it will open its first cash-and-carry outlet in India this year.
However,
under India's rules governing foreign direct investment, the French
multi-brand retailer is prohibited from selling directly to consumers.
In
order to circumvent these rules and establish a foothold in the
rapidly-developing Indian retail sector, a number of international
retailers have established joint ventures with local firms.
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