India is emerging market and lot of foreign
companies looking to enter in India through JV’S. Retail business in expending
at quick pace so every foreign retail major wants to enter Indian Market.
Tesco a British Retail Major has formed
JV with Trent Ltd. They formed a 50:50 JV in Trent Hypermarket Limited.
Trent is a Tata Group company. They currently
operate retail stores under banner name Star Bazaar and Star daily retail
business in India. They are mostly spread across Southern and Western regions
of India. They had 12 Stores under Name of Trent Hypermarket Limited.
TESCO will Invest 85 million Pounds for
the deal. That amount equals to Rs. 850 Crore.
In
September 2012 Government allows 51% FDI in Multi-brand retail and Tesco
becomes 1st company to apply for Multi-brand retail.
In December 2013, Tesco
and Trent said that they sought regulatory approval from Government to form
50:50 JV.
Tesco was already in agreement with THL Since
2008 for wholesale supply and franchise/technical service agreement to supply
merchandise and provide technical know-how and support to THL in India.
Tata Group always
known for forming JV’S as they were already formed JV’S with Starbucks and Tata
Global Beverages and Montblanc with Titan recently.