France's Auchan said Monday it had entered into a franchising deal with Max Hypermarket India Private Limited to enter the super-size retail market segment in India. The 13 existing Max Hypermarket stores will be rebranded under Auchan's colours this year and will operate under the franchise agreement, with plans to open 12 to 15 new outlets in a year in various parts of India, the French retailer said in a statement.
"We consider this new franchise partnership in India as a great opportunity for Auchan to enhance its brand on a very high potential market, characterised by a dynamism and a strong economic growth," said Philippe Baroukh, general manager for hypermarkets at the Auchan Group. Auchan, one of the world's top food retailers, currently operates in 12 countries and the franchise deal will allow it to enter a market estimated to be worth $470 billion (350 billion euros) per year. Opposition by domestic retailers scuttled planned reforms to allow foreigners to directly enter the Indian market but franchises are authorised.
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