Tesco denies govt pressure

UK-based retail giant denies reports that govt arm-twisted it to get into a multi-brand JV with Tata Group

UK’s Tesco, which has proposed a joint venture with Tatas for multi-brand retailing, has applied to the government for the venture keeping in mind business consideration, not because of external pressure, said Trevor Masters, chief executive, Asia.

Recently, reports said Tesco was armtwisted by the government to apply for multi-brand retailing. Tesco plans to take 50 per cent in Trent Hypermarkets, run by the Tatas. It is planning to invest $110 million in the venture.

“We have been working with the Tata Group in India for over five years, supporting the development of their Star Bazaar stores. We have always said we’d like to get more involved. Since the foreign direct investment policy was liberalised, we have reviewed possibilities and the current proposal is an outcome of these reviews,” Masters said.