Kishore Biyani's Future Group has signed a master franchise agreement to launch the first store of Japanese-owned convenience chain 7-Eleven in India, the company said in a BSE filing on Thursday.
This will mark 7-Eleven Inc, the world's largest convenience retailer with more than 67,000 stores worldwide, first entry into India. The first 7-Eleven convenience store in India is expected to open in 2019. The filing said that the master franchisee (Future Retail) will build 7-Eleven stores as well as convert some of its existing locations to the 7-Eleven brand. Future Retail runs more than 1,200 stores across food, grocery, and general merchandise.
Kishore Biyani, Founder and Group CEO, Future Group, said,
“7-Eleven is among the most iconic global brands in the food retail landscape. We are proud to bring this globally trusted convenience store to India and build new pathways together that will offer Indian customers greater convenience and choices, within their own neighbourhood.”
The company also said in a statement, “7-Eleven's entry into the country will modernise the small-retail environment and bring greater convenience to shoppers. Internationally popular products, beverages, snacks, and immediately consumable fresh foods with recipes developed for local tastes will be part of the initial convenience offering.”
“This strategic relationship offers an excellent opportunity to bring 7-Eleven's brand of convenience and its iconic products to the Indian consumer," added Ken Wakabayashi, International Head, 7-Eleven.
Meanwhile, media reports said that Amazon is in talks to buy a stake in Future Coupons, a company owned by Biyani. The reports said the move is an attempt to ensure that Amazon is in compliance with the amended FDI rules that bar marketplaces from holding equity stakes in entities selling on its platform.
Amazon was also earlier in talks with Future Retail to acquire a stake in the latter. But it had to put its plan on hold in the wake of the new FDI policy that has been implemented since the beginning of this month.