 "Tesco plans to bring in first multi-brand retail FDI via Tata tie-up")
Tesco has applied to invest in Trent Hypermarket, the British retailer said on Tuesday, making it the first foreign investor in India’s multi-brand retail sector.
The world’s third largest retailer made an application to India’s Foreign Investment Promotion Board and plans to invest $110 million, an official at the trade ministry said.
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A statement from the Trent said Tesco wanted approval to buy a 50 percent stake in the company, which operates its Star Bazaar hypermarket chain in the western state of Maharashtra and neighbouring Karnataka.
The decision brings much-needed relief to the government, which allowed foreign investors in India’s supermarket sector in September 2012 but had failed to see a single application until now.
Trent is a unit of India’s Tata Group.
Reuters