New Delhi: The Foreign Investment Promotion Board Monday approved UK-based Tesco Plc's proposal to enter the Indian multi-brand retail segment in joint venture with Tata Group company with an initial investment of USD 110 million (about Rs 680 crore).
Tesco proposal entailing investment of USD 110 million has been cleared, sources said after the FIPB meeting held here.
After the approval, Tesco will pick up a 50 percent stake in Trent Hypermarket Ltd, a wholly-owned subsidiary of Trent Ltd, a Tata group company.
Tesco is the first global retailer to apply for multi- brand retailing after the government allowed 51 percent FDI in the segment in September last year.
Trent Hypermarket runs 16 outlets in the southern and western regions with support from Tesco.
The UK retailer plans to sell 14 categories of products, official sources said. The items to be sold at its stores include tea, coffee, vegetables, fruits, meat, fish, dairy products, wine, liquor, textiles, footwear, furniture, electronics and jewellery.
The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, considered 12 items including Tesco's FDI proposal.
India allows FDI in most of the sectors through automatic route, government approval is required in certain sectors sensitive for the economy.