Tesco becomes the first global retailer to enter Indian Markets after FDI Reforms

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FIPB clears Tesco's $110 mn multi-brand retail proposal for 50% stakes in Tata Trent

Tesco plans to sell 14 categories of products including tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, electronics and jewellery.
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The Foreign Investment Promotion Board today approved UK-based Tesco Plc's proposal to enter the Indian multi-brand retail segment in joint venture with Tata Group company with an initial investment of USD 110 million (about Rs 680 crore).

Tesco proposal entailing investment of USD 110 million has been cleared, sources said after the FIPB meeting held here.

After the approval, Tesco will pick up a 50 per cent stake in Trent Hypermarket Ltd, a wholly-owned subsidiary of Trent Ltd, a Tata group company.

Tesco is the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September last year.

Trent Hypermarket runs 16 outlets in the southern and western regions with support from Tesco.

The UK retailer plans to sell 14 categories of products, official sources said. The items to be sold at its stores include tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, liquor, textiles, footwear, furniture, electronics and jewellery.

The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, considered 12 items including Tesco's FDI proposal.

India allows FDI in most of the sectors through automatic route, government approval is required in certain sectors sensitive for the economy.

Source:- FIPB clears Tesco's $110 mn multi-brand retail proposal for 50% stakes in Tata Trent - Indian Express
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Why did Walmart leave again?

 

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Why did Walmart leave again?

Walmart never left India - it just terminated its JV with Bharti and while doing the same it also said that it will work with the government to create "conditions that enable FDI in multi-brand retail." - Walmart just cannot give up on India because of the potential of its retail market for India is set to become the world's third-largest retail market by 2018, with food retail format sales accounting for $1,066,922 million, following China ($3,160,917 million) and the US ($1,442,146 million).

Split with Bharti: Why Walmart will stick to India’s retail story, despite hurdles - Economic Times