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Tesco talks to Bharti over India | |
(about 8 hours later) | |
Tesco is one of a number of foreign retailers that have been approached about launching a potentially lucrative retail business in India. | |
Indian firm Bharti Enterprises said it has spoken to Tesco and other foreign retailers about forming a joint venture and will choose a partner soon. | |
Only single-brand foreign retailers can operate in India under current rules. | |
Tesco, which said it could not comment on the issue, has been urged to focus on the wholesale sector in India. | |
'Deliberations' | |
The Bharti joint venture is seen as a huge opportunity for foreign retailers to get a foothold in a market analysts expect will double in size to $637bn by 2015. | |
Bharti has held talks with Wal-Mart, Carrefour and Metro as well as Tesco, according to reports. | |
"We are in the final stages of choosing a partner," Sunil Bharti Mittal, Bharti's chairman, said at a trade conference in London. | |
He confirmed that Tesco was one of the firms on Bharti's shortlist. | |
Indian officials have urged Tesco and other firms to consider other options in India while restrictions on operating stores are in place. | |
'Cash and carry option' | |
"Tesco has to be bold enough to go into cash and carry," Amit Mitra, secretary general of the Indian Chamber of Commerce, told Reuters. | |
"This is where Tesco has to go in; because if Metro is already there with its feet on the ground, when India's overall retail market opens they will be able to spurt." | "This is where Tesco has to go in; because if Metro is already there with its feet on the ground, when India's overall retail market opens they will be able to spurt." |
As the Indian economy continues to expand strongly, its retail industry, currently worth $300bn (£161bn) a year, is forecast to grow to $427bn by 2010 and $637bn by 2015. | As the Indian economy continues to expand strongly, its retail industry, currently worth $300bn (£161bn) a year, is forecast to grow to $427bn by 2010 and $637bn by 2015. |
Large overseas retailers such as Tesco, Metro and Wal-Mart are currently barred at the retail level in India, but not in the wholesale market. | Large overseas retailers such as Tesco, Metro and Wal-Mart are currently barred at the retail level in India, but not in the wholesale market. |
UK Prime Minister Tony Blair is meeting with his Indian counterpart Manmohan Singh in Downing Street on Tuesday and the two are discuss trade issues with business leaders. |