French retail giant Carrefour is working on a plan to exit India, according to reports in the local media this weekend.
The story was revealed by press coverage in the Business Standard, Times of India and other Indian newspapers.
It comes as India’s opposition Bharatiya Janata Party (BJP) is predicted to win the general election this month.
The party stated in its manifesto that it is opposed to allowing foreign direct investment in multi-brand retail in the country.
However, it has promised to push foreign investment in other areas of business.
Quoting unnamed sources in Carrefour, newspapers said the French group had been working on an exit strategy for two weeks.
Business Standard also quoted Franck Kenner, Carrefour’s regional director, as saying, "At this point, we will not be able to comment on anything."
The print media said Carrefour's plans to leave India followed on from discussions to sell its wholesale stores to Sunil Bharti Mittal's retail group failing.
The newspapers said there had been several senior level departures from Carrefour India lately.
It was expected that Carrefour would open supermarkets in India following the Congress-led national government allowing foreign retail businesses to launch 51% owned joint ventures in the country in 2012.
However, when the foreign direct investment retailing rules were passed by the Congress government, there were protests by local shopkeepers and workers.
Meanwhile, British retailer Tesco has announced it will invest in the country.
The company has agreed a deal with India's giant conglomerate Tata to invest in 12 stores.
© 2014 - European Supermarket Magazine
