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| Edited By: Debasis Mahapatra |Source: DNA |Updated: Mar 30, 2018, 02:23 AM IST
UK-based retail giant Tesco will open its first cash-and-carry outlet in Mumbai by the end of 2010.
And unlike its bigger US rival Wal-Mart, which has tied up with the Bharti Group for its wholesale business in the country, Tesco is planning to enter the cash-and-carry business on its own.
This was revealed by Mike McNamara, operations development and IT director of Tesco, on the sidelines of ‘Innovation Summit’ event organised by Tesco Hindustan Centre in Bangalore.
Cash-and-carry is the only retail format where 100% foreign direct investment is allowed by the government. German retailer Metro AG has also set up its cash-and-carry business in India without a partner.
The third largest British retailer’s entry into India comes two years after Wal-Mart and Metro. The company has a presence in India through its partnership with Tata Group’s retail arm Trent since 2008 for multi-brand format.
“Our tie-up with Trent is only for sharing of technical know-how. Cash-and-carry business will be wholly owned by Tesco,” McNamara said.
The company, which has taken time to enter India, is expecting its business here to push growth at a time when it was slumping in other geographies.
“Tesco will rely on emerging markets of China, South Korea and India for its future growth and India is very much in our radar,” he said.
On sourcing from India, McNamara said, “Tesco sources around £160 million worth of goods from India every year for its global business.”
He said Tesco Hindustan Service Centre (HSC), which provides IT, business, commercial and finance services to Tesco operations across Europe, Asia, and America saves around £50 million per annum for the company.
Sandeep Dhar, chief executive officer of Tesco, said the HSC was developing new technology to further improve efficiency of the UK-based retailer’s operations and slash cost.
“We have formed a retail test club, where various operational issues are being addressed through designing of new software,” he said.
Dhar said his company will be hiring more people to expand its business India.
