The struggling Indian retail chain stores are hopeful of being rescued by the large foreign players like Walmart Stores Inc, Tesco and Carrefour by getting equity investments or signing joint venture partnerships, once the policy on FDI in multi-brand retail is approved.
Kishore Biyani of Pantaloon Retail has been reported in the media to have been in talks with Walmart and Carrefour alternatively. Some tie-up with Carrefour is anticipated.
CESC, a unit of the Kolkata-based RPG Group that owns the Spencer's chain of convenience stores and hypermarkets, is reportedly also in talks with an undisclosed foreign player.
Walmart, which is already in partnership with Bharti for its cash-and-carry venture, has denied reports that it is scouting for a fresh partner.
Shoppers Stop, which operates the loss-making Hypercity food outlets is interested in finding a foreign partner in this category.
While several small scale shop owners have been opposing this FDI policy, most of them are anticipating gains such as improved infrastructure and the likelihood of funding.
Reliance Industries, which operates such grocery chains as Reliance Fresh under Reliance Retail, is an exception as it is not interested in any joint venture or partnerships with any foreign player. The retailer has been expanding aggressively and has been acquiring retail space across India for future expansions.