Is India the gateway to global domination for Tesco?
Tesco’s march into the Indian market was an inevitable move for a retailer with ambitions for global domination. But it comes almost two years after rival Asda-parent group Wal-Mart announced a 50/50 joint venture with Indian telecoms partner Bharti. And with an initial investment of £60m over two years to open a wholesale cash-and-carry chain – a snip for a business with group sales of £51.8bn – some view Tesco’s attempt to take a slice of the £300bn Indian retail market as “somewhat cautious”. Last week it announced plans to launch a wholesale cash and carry business to offer a range of fresh food, grocery and non-food products to small retailers and restaurants. It means that Tesco will have access to the market to supply products to India’s 12 million “kiranas” – the small, family-run shops that dominate the country’s grocery trade. Tesco is also entering into an exclusive agreement with the retail arm of the Tata Group to help grow its hypermarket business, Star Bazaar, from four
