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Trent to invest Rs 250 cr to open new stores

By Sujata Sachdeva

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Trent Hypermarket, the equally owned joint venture between the Tata Group and UK’s Tesco, would invest Rs 250 crores to open more stores in the country. It is the only joint-venture partnership under multi-brand FDI to go ahead with its retail expansion plans despite the new government expressing its reservation against it.

Experts point out that the company’s plan may prove a testing time for the ruling NDA government. However, contrary opinion also states that the government may not oppose the company’s plans with Modi focused on bringing in investment in the country.

After the earlier UPA government allowed 51 percent FDI in multi-brand retail and left the final decision of allowing foreign retailers in a particular state to the government there, both the Maharashtra and Karnataka welcomed the policy. The BJP, on the other hand, which won the majority and is all set to take charge on May 26, had opposed FDI in retail in its electoral manifesto.

Trent has also launched a separate company to open and operate its hypermarket stores in states that don't allow foreign investment in multi-brand retail, such as Gujarat and Tamil Nadu. Of the 16 stores under the Star brand, four were in Gujarat and Tamil Nadu that are opposed to FDI in retail. Trent has divested those stores into a separate subsidiary called Fiora Hypermarkets.

Trent