Tesco becomes the first international brand to file for multibrand retail FDI in India as it plans to acquire 50 per cent stake in Tata Trent, hence forming a JV. It was earlier in 2012 when FDI in multibrand retail was approved.
Tesco has filed for the JV with DIPP and if approved, the stake will be bought for $110 million. 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.
The stores will not use Tesco’s brand name anywhere. With this agreement, the stores will sell a wide variety of products ranging from food to clothing, under the tag ‘A Tata and Tesco Enterprise’. Moreover, the JV also aims at opening three to five stores in India annually.
Now that Walmart has broken ties with Bharti Retail and is going through a rough phase, Tesco gets a great opportunity to emerge in the market.
The Swedish retail brand, Hennes & Mauritz (H&M), has been given a nod of investing $115 billion (Rs 720 crore) in Indian retail market by the Foreign Investment Promotion Board (FIPB). With this approval, the retailer will set up fully owned subsidy in India.
It was earlier this year that world’s second largest fashion retailer had announced its plans to open 50 stores in India.
India has been across various reports, has emerged as a luring destination for investors in various sectors. Of these sectors, retail is seeing a splurge of investment, especially with FDI opening up in single brand and multi brand.
This time the high-end Italian brand, Stefano Ricci, plans to make an India entry as it awaits FIPB approval for 100 per cent single brand FDI. The brand retails luxury menswear with stores across Europe, US and Asia.
Reports suggest that the brand will open its first store either in Delhi or Mumbai.
Recently, even the crystal and gems brand Swarovski, has also filed proposal with FIPB for 100 per cent single brand FDI.
The Italian premium handbag and accessories brand, Furla, is all geared to bring its retail presence in India. Currently awaiting FIPB’s approval to the proposal, the brand will further enhance its 49:51 JV with Gurgaon based retail conglomerate, Genesis.
The JV together will invest Rs 13 crore in the country of which Rs 6.6 crore will come from Furla. Though the JV currently operates two franchised Furla stores and plans to open another in Kolkata or Bangalore.
Its a good news for the French fashion brand Celio as Foriegn Investment Promotion Board (FIPB) approves its plans to raise the stake in Future Group JV. The brand can now raise its stake from 50:50 to upto 100 per cent, thus allowing it to invest nearly Rs 40 crore in the country.
As the news come in, the two companies are already in talks to discuss the details of the deals. The brand has been operational in the country since four years with 30 standalone stores and over 100 shop in shops.