NEW DELHI, April 12. /TASS/. A number of Indian retailers are in talks to open shops in Russia, while many global brands are leaving the country due to the events in Ukraine, the Economic Times newspaper reported on Tuesday.
"So far, four Indian brands have signed initial agreements with Russian firms, and another half a dozen are expected to come on board later this week, said Susil Dungarwal, founder of retail consultancy firm Beyond Squarefeet Advisory, as quoted by the newspaper.
In particular, the Being Human Clothing fashion center of a famous Bollywood actor Salman Khan, the Maspar company, which sells household goods, and others are considering the possibility of opening their own business in Russian cities.
"We are seeking to take Indian brands to Russia as most of the American and European brands don’t sell there anymore," Dungarwal said as quoted by the newspaper.
According to him, a Russian delegation will visit India in early May to meet with potential Indian partners and get acquainted with their business. If the forthcoming negotiations bring results, then each Indian retailer will conclude a business deal with firms from Russia in the amount of at least $1 million and open 15-20 franchise stores there within six months, he said.
In March, Russian Council of Shopping Centers (RCSC), that operates more than 1,700 malls in cities including Moscow, St Petersburg, Kaliningrad and Vladivostok, started courting an array of alternative brands in India, China, Iran and Turkey to fill up the void created by the departure of western brands, the newspaper reported.
In mid-March, RCSC wrote to many Russian franchisee operators that Indian clothing, footwear and consumer goods retailers provide "unique opportunities" to set up shop in Russia to fill the gap, the Economic Times said.