The world's third-largest food retailer, UK-based Tesco, has apparently postponed plans first announced more than three years ago to set up wholesale cash-and-carry centres in India.
According to the Indian newspaper Business Standard, Tesco is opting to focus instead on an existing franchise scheme with Tata-owned company Trent's Star Bazaar store network.
Earlier this year, officials in the Indian region of Karnataka refused to grant Tesco a licence to sell agricultural produce, including fruit and vegetables, due to pressure from traders.
Tesco, which operates a total of 5,380 stores in 14 markets around the world, has two other operations in India, namely a sourcing office and a global support centre in Bangalore.
The group procures goods worth a total of £270m (€321.6m) from India.
Although the Indian government recently suspended its decision to allow 51 per cent foreign direct investment in multi-brand retail, there is currently no such restriction when it comes to cash-and-carry projects.
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