New Delhi: British retail major Tesco and Tata group company Trent Ltd, which formed JV for multi-brand retail, are mum on their future plans in the wake of the BJP opposing FDI in multi-brand retail in its manifesto.
In March this year, Tesco had announced forming of an equal joint venture with Trent by picking up 50 per cent stake in Trent Hypermarket Ltd (THL) for about 85 million pounds. THL operates the Star Bazaar retail business in India. The BJP, tipped as a favourite to form the next government in the Centre, in its manifesto said that it will keep foreign direct investment out of the key sector of multi-brand retail. "Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise," the BJP manifesto said.
When contacted, Tesco and Trent declined to comment on their future business plans after BJP made its position on multi brand retail clear. While, Tesco spokesperson said that they have "no comments to share at the moment", Trent Ltd in an email reply said it has "no comments to offer." Tesco became the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September, 2012.
The Foreign Investment Promotion Board had cleared its proposal on December 30 last year. While announcing the new joint venture, Tesco had said: "On completion of the transaction THL will operate 12 stores retailing a range of merchandise, including food and grocery, personal and home-care products, home and kitchen, fashion and accessories etc."
