Tesco,Trent JV to bring in first multi-brand retail FDI

Commenting on the development,commerce and industry ministry Anand Sharma said,We welcome the decision of Tesco to invest in India. On our part assure them all support for expedited clearances8230; We hope that this will mark a new beginning in transforming Indias retail industry. I am sure that other global leaders will also look at investing in India.

The UK-based retailer will trade in products under 14 categories,including cereals,tea,coffee,spices,flour,vegetables and fruits,meat,fish and poultry,sweetmeat,bakery and dairy products,soft drinks,ice-creams,wine and liquor,textiles,footwear,crockery,furniture and electronic equipment among others and plans to open three to five stores every financial year.

In September last year,the government had allowed 51 per cent FDI in the sector with certain riders like mandatory sourcing from Indian SMEs and investment in back-end infrastructure. Due to the conditionalities,global retailers,including US-based Walmart and Tesco had refrained from sending formal proposals to the government.

Following its meetings with both domestic and international retailers,the government in August 2013 eased the norms to make the segment lucrative for retailers.

Trent Ltd vice-chairman Noel Tata said,We believe that our understanding of the Indian market,coupled with Tescos unparallelled global retail expertise will allow us to leverage the tremendous potential of the market to the benefit of all stakeholders.

According to Tescos proposal,the joint venture,Trent Hypermarket Ltd,will operate outlets in India under banners,including Star Bazaar,Star Daily,Star Market with tag line stating A Tata and Tesco Enterprise.

Tesco has presence in India through a joint venture with the Tatas. These stores are located in Mumbai,Bangalore,Ahmedabad and Chennai. Tesco has stores in countries including China,South Korea,Thailand,Malaysia,Poland,Hungary,Ireland,Slovakia,Czech Republic and Turkey.

Earlier in May,Tesco CEO Philip Clarke and Noel Tata had met Sharma seeking clarifications on the policy,especially on sourcing conditions.

UK-baseD retailer seeks approval

Tesco sought approval to open retail stores in India with an investment of 110 million in joint venture with the Tatas

The UK-based retailer has proposed an equal joint venture with its existing partner,Trent,to open stores,initially in Maharashtra and Karnataka

The joint venture,Trent Hypermarket,will trade in products under 14 categories and plans to open three to five stores every financial year

The stores will be under banners,including Star Bazar,Star Daily,Star Market with tag line A Tata and Tesco Enterprise.