Tesco Goes to India - Expansion Overseas

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Wednesday Aug 13
Expansion Overseas
Tesco, the UK’s largest retailer, will now expand it’s stores into the India retail market.

Tesco plan to open a wholesale cash and carry chain, providing food (predominantly rice, pulses, and gram flour) and non-food products to restaurants, small chains and the “kirana” shacks that dominate India’s streets.

Tesco has already signed a franchise agreement with Tata Group, in order to provide “retail expertise and technical capability” to support their expansion of four hypermarkets to 50 over the next five years.

As Western Retailers are unable to open own-brand stores due to restrictions on Foreign Direct Investment by overseas retailers, Tescos have had to sign joint ventures and operate cash and carries in order to operate in India.

Tesco’s international and IT diector, Phil Clarke, said that Tesco will make an investment of £60m over the first two years in order to gain a slice of the £300bn Indian retail market.

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