A day ahead of Tesco, Carrefour pumps Rs160 cr in India business
17 Jan 2014
Carrefour SA, the world's second-largest retailer, infused Rs160 crore into its wholly-owned cash-and-carry (wholesale) business in India last month, according to a report.
The development came just a day before British rival Tesco Plc filed its proposal to invest $110 million (Rs677 crore) in a supermarket joint venture with the Tata Group, reports Times of India.
Some people familiar with Carrefour's India plans said the French retailer has also initiated talks with an Indian retail group for a possible entry into the multi-brand retail sector where it can sell directly to customers, the report says.
Carrefour WC&C India Pvt Ltd, which runs five wholesale stores in the country, has already invested Rs300 crore in opening stores and creating back-end infrastructure for the business, according to its latest filing to the Registrar of Companies (RoC).
In a recent board resolution, Carrefour decided to increase its authorised capital to Rs450 crore through fresh equity to fund India operations, which will be used for expanding its business.
Carrefour WC&C has allotted 16 crore equity shares of 10 each to Dutch units Carrefour Netherlands BV and Intercross BV, bringing in an additional Rs160 crore, the company said in its filing submitted on 16 December.
Two days after the new tranche of India investments, Carrefour opened its first store in south India - a 64,000 sq ft outlet in Bangalore. Its first four outlets were all in north India, in Delhi, Jaipur, Meerut and Agra.
