Retailer Tesco plans to become the first global chain to enter India since the government allowed foreign companies to invest in multi-brand retail more than a year ago.
Tesco proposed to invest about $110 million to gain a 50 percent stake in partner Trent Hypermarket Ltd (THL), a unit of Tata Group that runs Star Bazaar supermarkets, according to a statement from India’s commerce ministry. The application was submitted yesterday and they plan to open between three and five new stores each fiscal year, it said. On completion of the transaction THL will operate 12 stores retailing a range of merchandise including food and grocery, personal and home care products, home and kitchen, fashion and accessories. The stores are operated under the ‘Star Bazaar’ and ‘Star Daily’ banners, and spread across the southern and western regions of India.