Will an Australian supermarket look at this Indian opportunity?
At the same time as Australia’s Prime Minister Julia Gillard is visiting India to encourage new business between the two countries, a major Indian retailer, Future Group, has announced it is searching for a suitable foreign investor. The Future Group controls one of India’s largest supermarket chains, Big Bazaar.
The announcement comes shortly after the Indian government has passed laws to allow overseas ownership of multi-brand stores.
Future Group has been reported to have been experiencing some difficulties in recent times, which also may explain why it is looking for a ‘strategic and financial partnership’ with an international investor.
Earlier this year it was reported that French retailer, Carrefour, was interested. However, Moneycontrol.com recently reported that “the talks failed given the country’s earlier stringent investment regime for the sector.”
Managing Director for Future Group, Rakesh Biyani, has also been quoted as saying that Future Group would be interested in an international partnership, particularly one with investors from the UK.
New law changes are encouraging more foreign investment in India.