Future Retail not tying up with foreign supermarkets: Kishore Biyani

Future Group managing director Kishore Biyani has scotched rumours that Future Retail Ltd, India's largest retail company, is looking for a possible tie-up with a large foreign supermarket chain in the immediate future.

''I don't think we are so interested in something like this,'' Biyani said at the launch of a FoodHall store in the New Delhi. ''We will decide, there is no hurry...,'' he added.

Following the liberalisation of foreign direct investment in multi-brand retailing in September of 2012, foreign supermakets have been lining up for tie-ups with Indian partners for a share 49-per cent stake in their ventures.

Foreign retail chains that have been seeking entry in to the Indian market will need a local partner as the policy permits a maximum of 51 per cent equity holding by foreign companies in their Indian ventures.

French retailer Carrefour SA has in the past been in talks with Future Group, though the talks did not make much headway.

The retail sector is unsettled as British supermarket chain Tesco Plc has recently announced plans to enter the Indian market in alliance with the Tata Group (See: FIPB clears Tesco's $110-mn investment in multi-brand retail JV with Tatas)

while American retail giant Wal-Mart has exited an alliance with Bharti Enterprises (Walmart ends alliance with Bharti; to go slow with wholesale business).

Biyani, however, said the outlook for the retail sector in 2014 looked subdued as large spends by consumers have dropped and consumer sentiment still continuing to remain weak.

''Consumers have held back on large ticket items.''

However Biyani said the worst is now over, ''we remain optimistic...we have consolidated and we have made our mistakes,'' Biyani added.

Without going into the details, Biyani indicated some possible acquisitions on the fashion retailing space such as Fashion at Big Bazaar.