Dutch food retailer Spar International is parting ways with its Indian partner of five years, Max Hypermarket India Pvt Ltd, over differences on expansion strategy.
Max Hypermarket, part of the Dubai-based Landmark group, yesterday said that both companies will not renew their licensing agreement after 31 December and instead operate separately in India.
Max Hypermarkets operates 13 Spar Hypermarkets located in Bangalore, Mangalore, Hyderabad, Coimbatore, Delhi, Pune, Gurgaon and Vijayawada under a licence agreement signed in 2007.
Under the licensing agreement, Max Hypermarkets was responsible for the entire business operation – from capital expenditure outlay, day to day operations and management control, while Spar provided technology and best practices in international retailing and technical expertise.
While Amsterdam-based Spar wanted collaboration with several national and regional retailers to expand in India, Max Hypermarkets was keen on a strategic investor for the business, Dr Gordon Campbell, managing director of Spar International, said.
Both companies said in a joint statement that they will pursue separate growth plans in the country.
''We have both enjoyed a very successful relationship, but the time has come for us to pursue our own respective ambitions,'' said Penny Van Der Kaars, Spar International's spokesperson.
Max Hypermarkets operates 13 Spar Hypermarkets across Karnataka, Maharashtra, Andhra Pradesh, New Delhi and the national capital region under a licence agreement signed in 2007.