Retail giant Tesco has opened a subsidiary in India for the sourcing of fresh and processed foods from the country, according to reports. A spokesperson said fruits, marine and rice are the main categories that will be explored.
The UK-based retailer has bought through its international sourcing offices in Bangalore and New Delhi, which function as liaison centres, for several years in the general merchandise and clothing categories, with about 7 per cent of its international sourcing currently coming from India.
The retailer previously reported plans to increase by £45 million the retail value of its buying in India in the 12 months ending February 2013, from £325 million to £370 million.
The new business will slimline costs and will also enable the retailer to develop its buying expertise in the region and a negotiation presence with local suppliers. It is thought that the move is also in preparation for possible store openings in India. (3 Jan)
© 2012 - ESM: European Supermarket Magazine
