Sunday, October 15, 2006

Will Tesco enter Indian retail market before Wal-Mart?

Forbes reports that India is attracting the world’s largest retailers with its population of 1.1 billion that is steadily increasing and a retail industry in its infancy. While at present FDI regulations do not permit foreign retailers such as Wal-Mart and Tesco to set up shop on their own, Tesco could be close to finalizing a joint venture deal with Bharti Enterprises.

FieldFresh Foods, a subsidiary of Bharti Enterprises is said to be in the final stages of closing a deal with Tesco to bring the UK retailer to India. The Indian government has only permitted single brand retailers to enter the market, thus making global giants enter either the wholesale market or form joint ventures to get access to this gigantic market.

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