| This will help it build presence in India without falling foul of foreign-ownership rules that prohibit offshore companies from opening front-end retail stores.
Carrefour's move follows in the steps of Wal-Mart, the world's largest retailer, which is entering India in a wholesale joint venture with Bharti, a domestic group.
The French grocer, has been eyeing the Indian market for a long time. It had been in advanced discussions with Nusli Wadia of Bombay Dying, one of India's prominent industrial conglomerates, about a prospective deal, but failed to agree on terms. Talks with Dubai-based Landmark Holdings also failed.
Foreign retailers are not permitted to operate so-called multi-brand front-end stores in India, such as those owned globally by Carrefour, Wal-Mart or Tesco. But single-brand stores, like Gucci or Ferragamo are allowed.
Organised retailing has only about 5 per cent market penetration in India. But it is attracting increasing opposition from the nation's estimated 12m small shopkeepers, who fear that supermarkets and convenience stores will put them out of business.
The decision comes at a time when there is increasing opposition to the entry of organised retail in India, with mobs in states like Orissa and W. Bengal attacking stores owned by Reliance Retail, one of the country's fastest growing domestic operators.
Resource: http://www.msnbc.msn.com
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