Tesco will invest US$140m in India’s multi-brand retail sector, after receiving approval to launch a new joint venture in the Asian nation, according to The Economic Times.
India’s Foreign Investment Promotion Board (FIPD) signed off on the British retail giant’s plan to enter a deal with the Tata Group, which will see Tesco take a 50 per cent share in the Tata owned Trent Hypermarket Limited (THL).
The joint venture will operate 12 stores under the Star Bazaar and Star Daily banners, located across south and western India.
Tesco has provided retail support to the Star Bazaar chain since 2008. The move signals the first significant foreign investment in India’s multi-brand retail sector since Walmart ended its partnership with Bharti Enterprises last year.
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