Tesco likely to enter via cash & carry route

The Economic Times reports that UK based Tesco is likely to enter the Indian retail market via the cash & carry route, although it has not closed options for a full retail presence in the country either. According to sources, the company will be setting up cash & carry outlets by mid 2007, and also form a franchise deal with a domestic chain for its front end format.

At present, the tow major companies in the cash and carry business in India are Germany’s Metro and African chain Shoprite. According to Euromonitor, a UK based market intelligence firm, “When the restrictions on the retail industry in India are lifted, international retailers will be in a prime position to easily convert their cash-and-carry stores into highly profitable supermarkets and hypermarkets.”