UK-based retailer Tesco’s decision to apply for opening multi-brand retail stores in India in partnership with the Tata Group has been based on business considerations and not driven by any “external pressure”.
“Since the FDI policy was liberalised, we have reviewed various possibilities and the current proposal is an outcome of these reviews,” Tesco CEO Asia Trevor Masters said in a statement.
Tesco Plc became the first global retailer to seek the government’s approval to set up multi-brand outlets in India with a plan to invest $110 million in partnership with Tata’s Trent.
It has sought permission to acquire 50 per cent in Trent’s wholly-owned subsidiary Trent Hypermarket Ltd, that runs Star Bazaar stores. Masters added: “Our decision to progress the applications has been based on business considerations and not driven by any external pressure”.
He said that the company is working with Tata Group in India for over five years, supporting the development of their Star Bazaar stores. “We have always said we’d like to get more involved in this exciting market,” he added.
In its super market stores, Tesco will sell 14 categories of products including tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, liquor, textiles, footwear, furniture, electronics and jewellery.