by Eugene Vorotnikov - FoodBizDaily.com - Moscow
September 21 2009 - A co-owner of one of the largest Russian banks "My Bank" Gleb Fetisov could become the first Russian businessman, who will hugely invest in the retail trade of China.
According to Russian media Fetisov’s investment group «My Decker Capital» is planning to acquire a minority stake in one of the largest Chinese retail chains “New Cooperation Trade Chain (NCS)», comprising of 52 thousand grocery stores with a turnover of about $2 billion. Currently the Chinese grocery retail is actively growing, according to experts, while the easiest way to enter this market for investors is the purchase of already existing chains, rather than starting a new business.
As Russian press reports «My Decker» is going to invest more than $50 million in NCS in order to purchase a minority share. The representative of the Beijing office of the Russian company Zeng Soong noted that the transaction is not completed yet. For Gleb Fetisov it will not be the first transaction in the retail business: two years ago he, in cooperation with another Russian banker Igor Tsukanov, acquired a controlling stake of a Russian grocery retailer «Meridian».
The Russian office of «My Decker» has declined of comments, while Mr. Fetisov was also not available.
Currently NCS is one of the largest retail chains in China, according to Russian analysts.
"Only in Shanghai, the chain has more than 40 thousand outlets. Therefore it comprising of more than 52 thousand supermarkets and can be considered as a large in a country which has a shortage of grocery stores in some regions».
"China today, has the world’s largest consumer group, while recently the government has announced plans for the development of the national retail, primarily through investments of 590 billion dollars to stimulate the domestic demand", - says the publisher of the China Business magazine Anton Sarayikin.
He noted that due to existing restrictions on foreign retailers and measures to protect the national market the easiest way to enter this market for investors is to purchase of already existing chains.