NEW DELHI: The $40-billion French retailer Groupe Casino is learnt to be close to entering into a Bharti-Wal-Mart kind of alliance with Delhi-based real estate player Parsvnath Developers for retail operations in India. According to a source, the deal may be signed in a couple of weeks. However, Parsvnath Developers chairman Pradeep Jain declined to comment on the development.

Parsvnath, which has no retail pedigree, seems to have inched closer to a deal with Groupe Casino mainly on the back of its real estate strength. The company, which reported a net sales of Rs 465 crore and a net profit of Rs 112 crore for its December quarter, has a net developable area of 210 million sq ft. The company is setting up malls in over 15 cities. It is developing at least 12 metro malls in Delhi. Metro malls, located in the Delhi Rail Metro station premises, are an ideal location to attract metro commuters.

According to sources, the Groupe Casino-Parsvnath tie-up is likely to be modelled around the Bharti-Wal-Mart deal. The French retailer and the Indian developer are likely to form a joint venture for a wholesale business, and a franchisee or distribution arrangement for the front end. The French group, which has 10,000 stores in 11 countries and earns 30% of its revenue from outside France, operates its stores under several formats, including hypermarket, supermarket, convenience stores, discount stores and restaurants. However, it could not be ascertained which format the two likely partners will roll out in India.

India does not allow foreign direct investment (FDI) in front-end retail, although 100% FDI is allowed in wholesale. International retailers exploring Indian markets are attaching little importance to the potential local partner抯 retail experience, primarily because in a nascent retail market, there are not enough experienced retailers to choose from.

Source:http://www.casinonews.org/