French retailer Carrefour plans to establish a joint venture with an Indian partner to operate multi-brand stores.

Carrefour plans to follow the move of British retailer Tesco, which recently partnered with Tata’s Trent to initially invest $110 million to open supermarkets, building on the existing Star Bazaar stores in Maharashtra and Karnataka.

Its Indian subsidiary, Carrefour WC&C India, currently runs five wholesale stores in India. It recently infused Rs160 crore (approximately $35 million) to expand its cash and carry business there.

Carrefour, which entered India in 2010, has been cautious in its expansion, with just one store opening annually mostly. In 2012, it has incurred a loss of Rs83 crore (about $17 million).

As prescribed under FDI regulations, Carrefour can hold up to 51 per cent stake in the joint venture should it proceed.

However, with Delhi decided to ban FDI in multi-brand retail, Carrefour won’t be able to take advantage of the city’s vast potential.