French retail major Auchan, which entered India last year under a franchisee agreement with Max Hypermarket India, is exploring the possibility of bringing in foreign direct investments (FDI) into the country, a senior official from the company has said.
Auchan Global Chairman Vlanney Mulliez met Commerce and Industry Minister Anand Sharma on Tuesday to discuss the company’s future plans in India.
“We are very enthusiastic about the Indian market. And of course the new (FDI) regulations are a new issue for us. So we are considering explaining our ambitions and seeking some advice in order to address in the best way this huge potential market,” Muillez told reporters answering questions on the company’s plans to bring in FDI.
When asked whether Auchan would open stores in India, Mulliez was non-committal. “We cannot tell so far. We have to work on it,” he said. Max Hypermarket has plans of setting up as many as 60 stores under the Auchan brand in India over the next five years and has reportedly invested about Rs 450 crore in the country. Although India had not opened up the multi-brand retail sector to foreign investment when Auchan had entered into its arrangement with Max Hypermarket India last August, senior company officials had told the media that the two had agreed to discuss investments by Auchan if FDI was allowed.