Carrefour, the world's second largest retailer, has secured four properties in four cities across India and plans to set up 4 to 5 cash-and-carry stores by the end of 2010. Carrefour has signed for properties averaging about 100,000 square feet each in New Delhi, Bangalore, Chennai and Hyderabad and is in the process of signing up a fifth property in Mumbai, the sources said.

The company has set up two entities in India, Carrefour WC&C India Pvt Ltd to run cash-and-carry business and Carrefour Master Franchise Company Pvt Ltd for its retail business.

Indian regulations do not allow foreign direct investment in multi-brand retail, although foreign retailers can set up cash-and-carry outlets on their own. Carrefour sees signs of an improving investment climate in India, a senior official said, as it looks to build its presence in a restrictive but fast-growing market that has long tantalised and frustrated foreign operators.The French retailer will soon announce its Indian franchise partner and will open its first cash-and-carry store in the next few months, said Jean Noel Bironneau, managing director for the Indian unit of Carrefour

Carrefour is close to signing a deal with Future Group, India's largest retailer, to open stores under the French retailer's name, senior Future Group officials said last week.

Carrefour, which has been looking to break into the India market for seven years, will join retailers such as Wal-Mart and Germany's Metro AG in operating so-called cash-and-carry, or wholesale, ventures in India. "We do not think we are at a disadvantage," said Franck Kenner, director of operations for Carrefour India, referring to its entry into the Indian market after its global rivals. "The pace of expansion of the others have not been so fast."

Source: flex-news-food.com