French multinational retail giant Carrefour is launching a franchise partnership with Dubai-based Apparel Group to establish its presence in India.
The partnership will be aimed at North India initially, with further expansion planned across the country and the first store openings expected in 2025, Carrefour said.
'Carrefour’s flexibility to adapt its formats to different geographical and social contexts will allow it to capture customers from both the traditional trade and the modern trade, including the booming e-commerce channel,' it noted. 'The opening of the Indian market, in which only a few structured players operate, represents a strategic opportunity.'
Major Market
With a population of about 1.4 billion people, India is one of the world's largest food markets with the additional attraction of rising consumer spending power.
Commenting on the move, Patrick Lasfargues, executive director of international partnerships at Carrefour, said, "The arrival of Carrefour in India marks an important step in our strategy of expanding our franchise in more than 10 new countries by 2026."
Elsewhere, Nilesh Ved, owner of Apparel Group and president of AppCorp Holding, added, "Our goal is clear: to offer the best products at very attractive prices to all Indian customers and make Carrefour their favourite brand to shop."
India is grappling with severe food price inflation, which accounts for nearly half of the overall consumer price basket, weighing on the country's fast-growing economy.
Previous Efforts
Carrefour, one of the world's largest retailers with 14,000 stores in close to 40 countries, previously tried to conquer the Indian market through a partnership with another local retailer, but withdrew in 2014, saying the market was underperforming.
The Dubai-based Apparel Group, founded in 1996, is a major player in the apparel retail and food and beverage sectors, with over 2,300 stores across 14 countries, including 250 stores in India spread across more than 35 cities and 15 states.
Additional reporting by ESM
