Just 50 hypermarkets are being operated in India by four or five large retailers, but with as many as 67 cities with populations of half-a-million or more, Ernst & Young expects this retail format to expand in a big way in the next four to five years, reports The Hindu Businessline . It predicts that the hypermarket route will emerge as the most preferred format for global retailers stepping into India.

The E&Y report, The Great Indian Retail Story , acquires significance in the light of the buzz about Sunil Bharti Mittal, promoter of the country's top cellphone operator, Airtel, initiating talks with Tesco and Walmart to get the retail giants into India.

India still hasn't allowed FDI in multi-brand retail chains. Not long ago, New Delhi had allowed FDI in single-brand retail outlets, despite stiff opposition from the Left partners of the Congress-led ruling alliance.

Organised retail penetration is highest in footwear (22%) and clothing (12%). Food and groceries contribute 41% of private consumption expenditure and about 77% of retail sales, but organised retail accounts for a mere 1% of the business.

(For the complete story, go to: http://www.thehindubusinessline.com/2006/04/21/stories/2006042103541200.htm)