Carrefour to enter the India market In July
According to the second largest retail chain in the world after Wal-Mart, Carrefour, plans to open its first wholesale cash and carry store in the country at Seelampur in Delhi in the next tow to three months. It may be noted that India allows 100 percent FDI in the wholesale cash and carry trade, where the foreign company can only supply goods to other retailers and not to market these directly. Currently, French retail major Carrefour exports textiles and fresh produce worth $170 million in a year from India to Europe and other Asian countries.
Carrefour India Managing Director Jean Noel Bironneau told journalists said "Our first wholesale cash-and-carry outlet will be opened in Seelampur and have over 30,000 products varieties, The potential India has is immense and the organized sector comprises only five to six per cent. With the FDI inflow in the cash-and-carry business, this number will increase significantly.
We expect the export figures from India to go up substantially in the coming years. We are still exploring options, including the franchise route for further growth in India. We are open to partnership and in the next few months we will identify a partner and it will then be announced by our global headquarters". He also added "With organized retail contributing to only 5 per cent of the total sector, we look at India as a key market for our future growth. There is long-term profitability here".
Including in the UAE and Europe, the company now sources fruits and vegetables, décor items and other things from India for its international operations. Currently it is growing rapidly and in the coming years it is expected to grow from the current level of $150 million annually.