Blog: Tesco hits India

Catherine Sleep | 16 March 2006

Nothing if not determined, it appears that Tesco has found a way to increase its activities in India despite that country’s ban on direct foreign investment in pure food and grocery retailing. Word has it that Tesco is about to start working with Bharti, the Indian telecoms group which recently made its first foray into the food sector via FieldFresh Foods, a joint venture with Rothschild.

Speculation abounds that Bharti is exploring a food retail venture likely to include hypermarkets, supermarkets and convenience stores. Does Tesco know about these formats? That'll be yes, yes and yes.

It would be a smart move for both companies. Bharti has no experience of grocery distribution and could learn a lot from Tesco’s supply chain expertise, particularly given Tesco’s recent adventures moving into other Asian markets. Tesco meanwhile would be able to leverage the business know-how of a major Indian conglomerate and gain a further foothold in a market to which it might one day have broader direct access.

Tesco eyes Indian JV


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