Future Retail to operate 7-Eleven's foray into India

(Reuters) - Future Retail Ltd said on Thursday its unit SHME Food Brands signed a master franchise agreement with U.S.-based 7-Eleven Inc to operate its stores in India, marking the convenience retailer’s entry into the country.

Future Retail, which operates local retail chains such as Big Bazaar, Foodhall and Nilgiris, plans to set up 7-Eleven stores as well as convert some of its existing operations into the U.S. brand, the company said bit.ly/2U6Sbtc.

The first 7-Eleven store in India is expected to launch this year.

Under the agreement, 7-Eleven will initially sell beverages, snacks and immediately consumable fresh foods among other products.

Owned by Japan’s Seven & i holding, 7-Eleven operates over 67,000 stores in 17 countries, and its foray into the Indian market follows the entry of retail giants such as Amazon and Walmart.

Future Retail shares rose as much as 5.7 percent in their sharpest jump in over five weeks after the announcement, compared with a flat Mumbai market.

Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips