Supermarket chain Tesco seeks clarification on FDI policy
Foreign retailers are seeking more clarity on the issues of mandatory sourcing and investment in back-end infrastructure
New Delhi: British multi-brand retailer Tesco Plc. said on Friday that it has sought clarifications from the government on India’s foreign direct investment (FDI) policy for multi-brand retail ventures before taking any decision on entering the country.
Tesco chief executive Philip Clarke met commerce minister Anand Sharma in this regard in the capital. He was accompanied by Noel Tata, vice-chairman, Trent Ltd, and managing director, Tata International. Trent, the retail arm of the Tata group, has a franchisee agreement with Tesco for its hypermarket business in India.
“We came here for some clarifications on the policy. And the minister is going to consider some of the concerns that we have raised," Tata said.
Clarke said, “It was important today that we spoke to the minister about the small concerns we had." He said it would be months before Tesco and Trent make any further public announcements.
Several companies have sought clarifications on the 30% “mandatory sourcing" and backend infrastructure investment FDI norms for overseas investment in retail.
Global retailers such as US’s Wal-Mart Stores Inc. and French multi-brand retailer Carrefour SA are yet to announce plans to start regular retail operations in India.
Tesco has been present in India since 2004 through Tesco Hindustan Service Centre in Bangalore, which provides information technology, financial and research and development services. In 2008, it entered a franchisee agreement with Trent to provide support to its hypermarket chain Star Bazaar.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!