Trent-Tesco JV to focus on expansion despite BJP’s anti-FDI stand

JV partners, British retailer Tesco and Trent, a Tata group company,

are bullish about multi-brand retail business in India. Both companies are going ahead with their aggressive expansion plans in Maharashtra and Karnataka despite the new BJP government at the Centre which has expressed opposition to FDI in multi-brand retail. After the UPA government allowed 51 percent FDI in multi-brand retail and left the final decision of allowing foreign retailers to the concerned state government, both the Maharashtra and Karnataka welcomed the policy. The BJP, on the other hand, had opposed FDI in retail in its electoral manifesto.

Tesco and Trent in March signed an agreement to form an equal JV in Trent Hypermarket, which operates the Star Bazaar retail business in India. The UK retailer has committed an investment of 85 million pounds (over Rs 840 crores). The JV plans to add 5 stores in Maharashtra and Karnataka to the existing 12 Star Bazaar stores.

On the other hand, after announcing investment of Rs 1,328 crores in its India unit, American retail giant Walmart now plans to add 50 stores to its existing network of 20 outlets over the next 4 to 5 years. The company also announced plans of launching an e-commerce platform for buyers. Their announcement came a day after BJP unveiled its election manifesto. Whereas, the French retail major, Carrefour is said to be preparing for an exit from the country.