Finally, as 2014 rings in, its a good news for multi-brand retail FDI. Foreign Investment Promotion Board (FIPB) approves Tesco’s proposal to invest $110 million in Indian retail market in JV with Tata’s Trent Hypermarkets.
The approval makes Tesco the official first in the Indian retail market to set shop in JV with an Indian brand.
Tesco will own 50 per cent stake in Trent Supermarkets that currently runs 16 Star Bazaar hypermarts across Maharashtra, Karnataka, Gujarat, and Tamil Nadu. But Gujarat and Tamil Nadu not yet up for FDI, the current JV will focus on the stores in Maharashtra and Karnataka.
As reported earlier, the auto major, Mahindra & Mahindra, had planned to enter the fresh fruit segment, has now announced the launch of its fruit brand Saboro.
Aimed at the health conscious consumers, the will offer a wide variety of fresh fruits including apples, bananas, grapes and some imported variety.
The brand has been launched in Hyderabad, keeping in mind the cities growing consumption of fresh vegetables and fruits and also the growing modern retail culture.
With this step, the brand, seeking to become a premium label, will be driving an organised market into the India’s strong agriculture segment, thus empowering the farmers and benefiting them.
It really sounds like a sad story, an alliance that looked like a perfect match, ‘growing old’ kinds but finally, Bharti and Walmart part ways and call off their Indian JV.
With the split, the US counterpart will buy in the stake of the Indian partner in the cash and carry wholesale JV, for an undisclosed amount. The two parties have come to an agreement wherein the two will pursue separate retail businesses in the country.
According to the company statement, “Upon receipt of required clearances, Walmart would acquire Bharti’s stake in Bharti Walmart Pvt Ltd, a joint venture between Bharti and Walmart, giving Walmart 100 per cent ownership of the Best Price Modern Wholesale cash and carry business.” Bharti will acquire the $100 million worth Compulsory Convertible Debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti.
Bharti Retail plans to continue the expansion plans for their stores, easyday, which currently stand at 212 in number.
The business has been going through various internal issues, given the Indian FDI policies. Moreover, the changes started show as soon as Raj Jain called it quits.
Now as we think, is there a possibility of Raj Jain joining back?