Tesco has finally signed a deal to become the first foreign supermarket to enter India's £330 billion retail sector.
Britain's largest retailer has sealed a joint venture agreement with a unit of India's TataGroup that will see it invest £84 million to form a 50:50 joint venture with the operator of the Star Bazaar retail business, Trent Hypermarket Limited.
The world's third-largest retailer, which since 2008 has had a franchise agreement to provide support to Star Bazaar, had made the application to India's FIPB in December.
On completion of the transaction THL will operate 12 stores selling a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories.
India's Government relaxed rules regarding foreign investment in September 2012, and now international firms are now able to buy up to a 51% stake in multi-brand retailers.
© 2014 - European Supermarket Magazine by Enda Dowling
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