(Reuters) - U.S.-based 7-Eleven Inc expects to open its first branded store in India this year, after reaching a deal with Future Retail Ltd to run the chain in the Asian nation.
Future Retail, which operates local retail chains such as Food Hall and Nilgiris, plans to set up 7-Eleven stores from scratch and convert some of its existing operations into the U.S. brand, the company said in a statement.
Shares in Future Retail, founded by Kishore Biyani has 1,444 stores, closed up 3.2 percent after the announcement.
“The agreement gives Future Retail an additional revenue basket,” Abneesh Roy, senior vice president of research at Edelweiss Financial Services, said.
He said it would also benefit customer of Future Consumer, the group’s sourcing-to-supermarket food company.
The first 7-Eleven store in India is expected to launch this year, the companies said.
7-Eleven, owned by Japan’s Seven & i holding, will sell beverages, snacks, fresh foods and other products. The brand has 67,000 stores in 17 countries that stay open around the clock.
“We have seen some states issuing guidelines permitting shops to be opened 24 hours, so this could be picked up by others states too,” said Anil Talreja, partner at global consultant Deloitte.
Retailers in India require different licenses to operate 24 hours a day and to sell alcohol. Most shops are required to close by 1030 PM Indian Standard Time (1700 GMT)
Reporting by Chandini Monnappa in Bengaluru and Promit Mukherjee in Mumbai; Editing by Subhranshu Sahu and Sherry Jacob-Phillips