French retailer Carrefour is close to clinching a deal with a unit of Pantaloon Retail India's largest listed retailer The deal will allow setting up of franchisee stores in India, according to a report in The Economic Times, which cited an unnamed source.
The move comes after six years after the retailer started scouting for partnerships in the world's second-fastest growing nation, including with Mukesh Ambani's Reliance Retail and real estate group DLF.
According the paper the French firm would sign the deal for the joint venture by March, the report said quoting an unnamed official source familiar with the development.
The venture would likely be part of Future Value Retail, a wholly-owned unit of Pantaloon, which currently manages the hypermarket chain Big Bazar and supermarket chain Food Bazaar businesses, according to the report.
Under Indian laws, foreign direct investment is allowed only in the cash-and-carry wholesale business while foreign investment is barred in multi-brand retail.