Tesco to open 6-8 multi-brand stores in India this year.

UK-based Tesco is chalking out expansion plans, even as most global retail majors like Walmart are waiting for a positive signal from the Narendra Modi-led central government before moving ahead with their plans for the Indian multi-brand retail sector. The company, in equal partnership with the Tata group's Trent, is working on opening six to eight new stores in Maharashtra and Karnataka under three of its formats this financial year, informs a source aware of the plans.

Tesco is the only foreign retailer to have made a proposal for multi-brand since the segment was opened to up to 51 per cent foreign direct investment (FDI) in 2012 by the then United Progressive Alliance (UPA) government. The present National Democratic Alliance (NDA) government under Modi is opposed to multi-brand retail FDI but has not reversed the UPA policy. Sources indicate the new government is unlikely to entertain a new multi-brand proposal at least in the near future - that could for now mean advantage Tesco.

The UK retailer's addition of six to eight stores will take the total number of Tesco-Trent outlets in the country to 20. In its proposal, Tesco had clearly said it was going to invest in Maharashtra and Karnataka, both Congress-ruled states. Clearance by states concerned is among tough conditions in the multi-brand retail policy.

BS