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According to the report, the deal may be inked in a
couple of weeks. However, Parsvnath Developers Chairman Pradeep Jain has
declined to comment on the possible tie-up.
Parsvnath has no retail experience and seems to have
used its real estate strength to negotiate with Groupe Casino. The company,
which reported net sales of Rs 465 crore ($116m) and a net profit of Rs
112 crore ($28m) for its December quarter, has a net developable area
of 210 million sq ft.
The company is setting up malls in over 15 cities. It
is developing at least 12 metro malls in Delhi. Metro malls, located in
the Delhi Rail Metro station premises, are an ideal location to attract
metro commuters.
Apparently, as with many similar negotiations by the
foreign retail operators, Casino is willing to overlook the lack of retail
experience, because of the real estate strength of Parsvnath.
According to sources, the Groupe Casino-Parsvnath tie-up
is likely to be modelled around the Bharti-Wal-Mart deal. The French retailer
and the Indian developer are likely to form a joint venture for a wholesale
business, and a franchisee or distribution arrangement for the front end.
The French group, which has 10,000 stores in 11 countries
and earns 30% of its revenue from outside France, operates its stores
under several formats, including hypermarket, supermarket, convenience
stores, discount stores and restaurants.
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