Carrefour signs with Future Group

After years of searching, it has been reported the French retailer Carrefour has finally found its Indian partner

Europe's largest retailer, the French chain Carrefour has formed an alliance with India's Future Group, Livemint.com has reported.

The report cited two anonymous sources that claim to have inside knowledge of the deal and, although they said the agreement was signed three months ago, no official announcement has been made.

According to the report, Future Group will open 150-300 Carrefour franchise stores in the country over the next five years.

Indian laws only permit foreign companies to operate there through franchise deals with local firms, and Carrefour had been looking for a partner in the country for several years.

The Bharti Group formed a partnership with US giant Wal-Mart, and the UK's Tesco announced a deal with India's Tata Group last month.

The story's sources said Future Group was examining which Big Bazaar hypermarket locations could be converted into Carrefour stores, and that the company will use space earmarked for Big Bazaar outlets to open Carrefour stores instead.

One of the sources said while Big Bazaar will continue to operate in its current mass-market format, the Carrefour stores will cater to more high-end consumers in the country.