Tesco is the first global retailer to apply for multi-brand retailing after the Indian government allowed 51% FDI in the segment
The Foreign Investment Promotion Board (FIPB) on Monday approved UK-based Tesco Plc's proposal to enter Indian multi-brand retail segment in a joint venture with Tata Group with an initial investment of $110 million (about Rs680 crore).
After the approval, Tesco will pick up a 50% stake in Trent Hypermarket Ltd, a wholly-owned unit of Trent Ltd. Trent Hypermarket operates retail business under the name of ‘Star Bazaar’.
Tesco is the first global retailer to apply for multi- brand retailing after the government allowed 51% foreign direct investment (FDI) in the segment in September last year.
Trent Hypermarket runs 16 outlets in the southern and western regions with support from Tesco.
The UK retailer plans to sell 14 categories of products, official sources said. The items to be sold at its stores include tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, liquor, textiles, footwear, furniture, electronics and jewellery.
The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, considered 12 items including Tesco's FDI proposal.
India allows FDI in most of the sectors through automatic route, government approval is required in certain sectors sensitive for the economy.
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