Auchan, Max Hypermarkets end retail partnership in India

In a joint statement released by both Max Hypermarkets and Groupe Auchan

said that they have put an end to their two-year-old partnership after failing to convert it into a joint-venture in India. In August 2012, the Croix, France-based Auchan had signed a licence agreement with the Landmark group which operates 13 Max Hypermarkets in the country. Earlier, Max Hypermarkets had a similar partnership deal with Dutch retailer Spar.

The move comes at a time when except Tesco, no other foreign retailer has got permission to operate under the multi-brand retail FDI. Even American retail giant Walmart is concentrating on wholesale business after parting ways with Bharti and last month, French retail biggie Carrefour announced its exit plans from the country.

However, the 48 billion euros (over 39, 000 crores) Groupe Auchan has said that it would continue to keep its focus on long-term investments in the Indian market. The Indian team would continue to explore best ways to develop the hypermarket business model and the Auchan brand, especially in the areas where foreign investments are liberalized, a company statement said.

Indian billionaire Micky Jagtiani owns the Landmark Group that has brands including Max and Home Centre. Max has hit the sweet spot by positioning itself higher than Fashion at Big Bazaar and lower than Pantaloons and Westside in pricing. It opened its first store in India in 2006.