French retailer Carrefour set to re-enter India with Dubai's Apparel Group

New Delhi: French multi-brand retailer Carrefour, which operates hypermarkets and grocery stores in several countries, has announced its re-entry into India through a franchise partnership with Dubai’s Apparel Group.

The company first entered India in 2010 through the wholesale cash and carry format, for which foreign direct investment (FDI) rules are more lenient, allowing overseas companies to invest directly in India's retail market. This is different from FDI in multi-brand retail, where foreign retailers are expected to partner with local companies. Carrefour shut its five stories in India and exited the market in July 2014, citing a lack of business and an inability to find a partner to expand its business to multi-brand retail.

Patrick Lasfargues, Carrefour's executive director of international partnership said in a statement on Monday, “Thanks to this partnership, we are very happy to launch in India and grow our footprint in one of the fastest-growing economies in the world. India is now the cornerstone of the Carrefour International Partnership 2026 development plan, marking a significant step forward in our strategy to expand into over 10 new countries by 2026.”

“We will be expanding with multiple formats across the country to adapt to this dynamic country’s retail landscape,” he added.

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Carrefour, which operates 14,000 stores in more than 40 countries, posted sales of €94.1 billion in 2023. It sells both food (fresh produce) and non-food items such as health & beauty products, household goods and textiles.

First five stores next year

On Monday the retailer said it would introduce Carrefour’s exclusive brands in India through the partnership with Apparel Group. They will be launched in north India at first, with plans for a nationwide expansion. It wasn't immediately clear whether Carrefour will offer its full range of products in India. The company said it plans to open the first Carrefour stores in the National Capital Region in 2025. Apparel Group will introduce various Carrefour formats, such as hypermarkets, supermarkets and gourmet stores in India.

The companies did not share their investment plans for India. 

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The Apparel Group, founded in Dubai in 1996, operates in the retail clothing and food and beverage (F&B) sectors. It manages a portfolio of more than 85 brands and operates more than 2,300 stores across 14 countries across the Middle East, India, Southeast Asia and Africa.

Nilesh Ved, owner of Apparel Group & chairman of AppCorp Holding, said, “In a very dynamic and rapidly changing market for food retail, we plan to open our first Carrefour stores during the summer of 2025. This partnership represents a significant step in strengthening our position in India. Our goal is clear: to offer the best products at very attractive prices to all Indian customers and make Carrefour their preferred choice for shopping.”

He added, “We're committed to bringing the true essence of Carrefour to India. Our stores will offer a wide range of products, including groceries, fresh produce, and other food items. Depending on the store format, we'll also feature non-food items like household goods, electronics, and clothing.”

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