French retail giant Carrefour on Tuesday said it will start wholesale cash-and-carry business in India within next 2-3 months with the opening of its first store in Delhi.
The company, which has been scouting for partners in India, said it is still exploring options, including the franchise route for further growth in India.
Carrefour also expects its sourcing from India for its international operations to grow manifold in the years to come, from the current $150 million annually, once it starts wholesale business here.
"Our first wholesale cash-and-carry outlet will be opened in Seelampur in Delhi within 2-3 months. It will be have an area of 55,000 sq ft and will have over 30,000 SKUs or products varieties," Carrefour India managing director Jean Noel Bironneau said.
He said the company has aggressive expansion plans for future but refused to share details of investments or the number of outlets planned by the company in India.
Carrefour is starting the cash-and-carry business as a wholly-owned subsidiary but Bironneau said the company is ready to explore the franchise route for growth.
"We are open to partnership and in the next few months we will identify a partner and it will then be announced by our global headquarters," he added.
He refused to disclose anything further in this regard, including on the speculation of the company being close to sign an agreement with Kishore Biyani-promoted Future Group.
"With organised retail contributing to only five per cent of the total sector, we look at India as a key market for our future growth. There is long-term profitability here," he added.
Bironneau said Carrefour expects its sourcing from India to grow manifold in the years to come. The company currently sources fruits and vegetables, decor items and other things worth $150 million annually from India for its international operations, including in the United Arab Emirates and Europe.
"We intend to increase purchase for both our operations both within and outside the country. When we start having our own wholesale business in the country, our suppliers will increase and so will our product portfolio," he said.
The 86-billion-euro Carrefour is the world's second largest retailer.
Asked if the company will be ready to take a plunge into the multi-brand retail segment in case government opens it up for FDI, Bironneau said: "Off course, we will enter. There is so much potential. But it is still early to say much with regard to it."
