Tesco Plc confirms joint venture with Tata Trent in India

Written by Reuters | Mumbai | Updated: Mar 22 2014, 16:11pm hrs
Tesco-Tata TrentTesco Plc has sealed a joint venture agreement with Tata Trent that will see it invest $140 million.
Britain's Tesco Plc has sealed a joint venture agreement with a unit of Tata Group that will see it invest $140 million and become the first foreign supermarket to enter the country's $500 billion pounds retail sector.

Tesco said on Friday that following receipt of approval from the Indian Foreign Investment Promotion Board, it has entered into a deal with Trent Ltd to form a 50:50 joint venture with the operator of the Star Bazaar retail business, Trent Hypermarket Limited (THL).

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 retailing a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories.

The stores are operated under the 'Star Bazaar' and 'Star Daily' banners, and spread across the southern and western regions of India.

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