French retailer Carrefour is reportedly exploring options of exiting the Indian market in the wake of the new government’s opposition to allow foreign investment in the multi-brand retail sector, according to sources.
While the company is understood to have engaged KPMG to help sell its India assets, sources said that the retailer is in talks with US-based Walmart to sell its cash-and-carry stores. Carrefour has five stores in the cash-and-carry format — one each in Bangalore, Jaipur, Delhi, Meerut and Agra. Sources said that the move comes after Carrefour’s talks with Bharti collapsed.
A Walmart source, however, denied that they have been approached by the French retail major. Walmart has 20 wholesale outlets in India and plans to open 50 more such outlets over four to five years. There is no restriction on foreign direct investment in the cash-and-carry format or on single-brand retail.
Carrefour’s move comes amid the BJP-led government’s reiteration that it will not allow foreign direct investment in the multi-brand retail segment. There are only a few states which have allowed it.
Commerce and industry minister Nirmala Sitharaman had, on the day of assuming charge, said that the position of the party remains unchanged on the issue.