Tesco says it is awaiting clarity on India's retail FDI norms
UK's leading retailer Tesco Plc is awaiting clarity on India's policy on FDI in multi-brand retail trading before drawing up its plans for the country.
New Delhi: UK's leading retailer Tesco Plc is awaiting clarity on India's policy on FDI in multi-brand retail trading before drawing up its plans for the country.
World's largest retailer Walmart yesterday split its six-year old partnership with Bharti Enterprises, apparently unable to comply with the FDI norms for multi-brand.
A Tesco spokesperson said: "We are excited about the India opportunity and await policy clarity before we can take further decisions on the matter".
The company, which has a partnership with Tata group firm Trent, did not elaborate on the type of clarity it has sought from the government.
Earlier in May, Tesco CEO Philip Clarke and Trent Ltd Vice-Chairman Noel Tata had met Commerce and Industry Minister Anand Sharma and had raised a few concerns.
"Tesco is and has always been very interested in India. We have made substantial investments in India over the last decade. Bangalore houses our global innovation and operations hub -HSC- that employs more than 6,500 people.
"We export nearly half a billion dollars? worth of good through our international sourcing operations. Our whole selling entity supplies close to 70 percent of all the goods in Star Bazaar stores across the country," he said.
In June, the government had come out with clarifications on queries from global retailers.
As per the FDI policy on multi-brand retail, a foreign retailer must source 30 percent of the items that it sells in India from 'small industries'.