CALL IT the Sonia Effect. The world’s second largest retailer Carrefour has postponed its India plans indefinitely, following rising political opposition to the entry of transnational retailers in the country. Carrefour’s India head Gerard Freiszmuth told ET, “We will not be in a position to announce any concrete India entry plan till policy issues on FDI in retail are made clear.” In February, commerce minister Kamal Nath had announced that Carrefour had identified its Indian partner (believed to be the Wadias) whose name would be made public in “two to three weeks.”
It appears the French retailer has delayed its plan largely due to two recent developments. “We are waiting for some more clarity on the Bharti-Wal-Mart structure. Simultaneously, we are awaiting the results of the ICRIER study commissioned by the government,” Mr Freiszmuth said.
Carrefour still studying pros and cons
THINK tank ICRIER is currently studying the impact of transnational and corporate retailers on mom-and-pop stores. The study was commissioned by the DIPP in February. Asked whether Carrefour was looking at a specific timeframe within which it would announce its plans, he said, “We have the liberty to take a decision on this issue and I cannot comment on a specific timeframe right now. “We have been looking at India as an attractive destination and hope to have a long-term association with the country.
We are studying and understanding the various pros and cons and will not make an announcement in haste.” Carrefour’s India plans have been in the pipeline for at least a year. In the past few months, Carrefour’s top management has met various potential partners in India.
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