Tesco Moving Into Indian Market

Fri, 15 Aug 2008
 
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Retail giant Tesco has announced that it intends to develop a wholesale cash and carry business in India .

In the initial two years, it will initially invest about GBP60m (US$115), with the business being based in Mumbai .

The stores are going to cater for the Indian market, offering a range of grocery, fresh food and non-food products for small retailers, kiranas (small neighbourhood shops) , restaurants, as well as other businesses .

CEO of Tesco stated that this is an extremely "exciting" development " as it complements Tesco's entries into the United States and China . It provides Tesco with access to one more key world economy . The intended wholesale cash-and-carry approach is going to bring added value, variety and services to many thousands of Indian businesses.

In addition, Tesco is entering a franchise agreement with Trent, the Tata Group's retail at a fee. It is anticipated that this deal is going to support the development of Trent's hypermarket business, Star Bazaar, which will be opening 50 more outlets over the next five years.

Tesco's wholesale business is going to supply merchandise to Star Bazaar, which will enable both companies to benefit from the development of a modern supply chain.

At present Tesco has sourcing offices Bangalore, Delhi and Tirupur.

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