Tesco First In Line For Multi-Brand Retail Investment In India

Vishal Sawant / 19 Dec 2013

Tesco First In Line For Multi-Brand Retail Investment In India

The British retailer, the third largest in the world, is looking to invest in the Indian hypermarket chain Trent as per the country’s recently passed norms regarding FDI in retail. The company is proposing to buy a 50% stake in Trent, though foreign retailers are permitted to hold 51% equity in multi-brand retail.

Tata Group-owned Trent and British retailer Tesco have been in discussions regarding an investment by Tesco in Trent Hypermarket (THL), which operates the Star Bazaar business and is engaged in multi-brand retail trading.

Trent is a retail operations company that owns and manages a number of chains in India such as Westside (lifestyle retail stores), Star Bazaar (hypermarket chain), Landmark (books and music chain), and Fashion Yatra (family fashion store).
THL currently operates 16 stores across the southern and western regions of India. The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka.
 
This is the first application going to the Foreign Investment Promotion Board (FIPB) after the government opened multi- brand retail to FDIs in September 2012. However, Tesco is proposing to buy a 50% stake in Trent, though foreign retailers are permitted to hold 51% equity in multi-brand retail.
 
Noel Tata, Vice Chairman of THL commented on this development saying, "The application is a positive step forward in the relationship between the Tata Group and Tesco. We believe that our understanding of the Indian market, coupled with Tesco’s unparalleled global retail expertise, will allow us to leverage the tremendous potential of the market to the benefit of all stakeholders".
We believe that this deal will mark a new beginning in transforming India's retail industry.

If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.