CarrefourSA,the world'ssecond largest retailer, infused . 160 crore into its wholly owned cash and carry business in India last month, just a day before British rival Tesco filed its proposal to invest $110 million, or about . 677 crore, in a supermarket JV with the Tata Group.
Some people familiar with Carrefour’s India plans said the French retailer has also initiated talks with an Indian retail group for a possible entry into the multibrand retail sector where it can sell directly to customers.
Carrefour WC&C India, which runs five wholesale stores in the country, has already invested . 300 crore in opening stores and creating allied back-end infrastructure, according to its latest filing to the Registrar of Companies.
In a recent board resolution, Carrefour decided to increase its authorized capital to . 450 crore through fresh equity to fund India operations,which will go into expanding its business.
Carrefour WC&C has allotted 16 crore equity shares of . 10 each to Dutch units Carrefour Netherlands BV and Intercross BV, bringing in an additional . 160 crore, the company said in its filing submitted on December 16.
Franck Kenner, regional director for Carrefour in India,declined to comment on the latest investment or retail plans. An industry veteran with experience in setting up cash-and-carry stores for Walmart in India said it generally costs . 25-35 crore to open a wholesale store. “So, technically, . 160 crore could get you five to six such stores,” he said, requesting not to be named.
Another person of a rival retail firm said the newly infused money could be to fund operational cost of Carrefour outlets currently bleeding.
Two days after the new trench of India investments, Carrefour opened its first store in south India—a 64,000 sq ft outlet in Bangalore. Its first four outlets were all in north India, in Delhi, Jaipur, Meerut and Agra.
Over the last seven years or so, Carrefour has held talks with various Indian firms including Bharti Enterprises, retail estate group DLF and Future Group among others to forge a partnership in India without much luck.
If its fresh talks with an Indian retail group lead to a supermarket retail joint venture, Carrefour will be able to hold up to 51% stake in it.
Source: The Economics Times
By: SAGAR MALVIYA & RASUL BAILAY
Some people familiar with Carrefour’s India plans said the French retailer has also initiated talks with an Indian retail group for a possible entry into the multibrand retail sector where it can sell directly to customers.
Carrefour WC&C India, which runs five wholesale stores in the country, has already invested . 300 crore in opening stores and creating allied back-end infrastructure, according to its latest filing to the Registrar of Companies.
In a recent board resolution, Carrefour decided to increase its authorized capital to . 450 crore through fresh equity to fund India operations,which will go into expanding its business.
Carrefour WC&C has allotted 16 crore equity shares of . 10 each to Dutch units Carrefour Netherlands BV and Intercross BV, bringing in an additional . 160 crore, the company said in its filing submitted on December 16.
Franck Kenner, regional director for Carrefour in India,declined to comment on the latest investment or retail plans. An industry veteran with experience in setting up cash-and-carry stores for Walmart in India said it generally costs . 25-35 crore to open a wholesale store. “So, technically, . 160 crore could get you five to six such stores,” he said, requesting not to be named.
Another person of a rival retail firm said the newly infused money could be to fund operational cost of Carrefour outlets currently bleeding.
Two days after the new trench of India investments, Carrefour opened its first store in south India—a 64,000 sq ft outlet in Bangalore. Its first four outlets were all in north India, in Delhi, Jaipur, Meerut and Agra.
Over the last seven years or so, Carrefour has held talks with various Indian firms including Bharti Enterprises, retail estate group DLF and Future Group among others to forge a partnership in India without much luck.
If its fresh talks with an Indian retail group lead to a supermarket retail joint venture, Carrefour will be able to hold up to 51% stake in it.
Source: The Economics Times
By: SAGAR MALVIYA & RASUL BAILAY
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