TESCO INVESTED RS 850 CRORE IN MULTI-BRAND RETAIL
British retail major Tesco has invested Rs 850 crore in multi-brand retail trading in the country. Government approved a proposal from Tesco Overseas Investment Ltd (Tesco), a UK company, for foreign investment of not less than USD 110 million to carry out business of multi-brand retail trading in India. The FDI inflow reported by the RBI from Tesco is Rs 850 crore.
In March last year, Tesco had announced formation of an equal joint venture with Tata group company Trent by picking up 50 per cent stake in Trent Hypermarket Ltd (THL). THL operates the Star Bazaar retail business in India. Tesco was the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September 2012.
Government has not taken any decision with regard to implementation of FDI policy in multi-brand retail trading. The BJP, which got a massive mandate in the general elections last year, had opposed foreign direct investment (FDI) in multi-brand retail in its manifesto. Currently, 51 per cent FDI is permitted in multi-brand retail.