Deal with Bharti imminent, reports claim
Tesco is close to securing a deal that could see it moving into India, according to The Economic Times, India's financial daily.
It reported that the UK supermarket chain is close to finalising a joint venture agreement with Indian firm Bharti Enterprises. The joint venture will focus on selling fresh foods, groceries and other convenience foods.
According to Indian law, Tesco will be prohibited from owning any stake in the company. However, sources said there would be a profit-sharing agreement and the door would be left open for Tesco to pick up a stake when the foreign direct investment laws change.
The Indian grocery market is valued at US$203 billion (£108.47 billion) and is closed to foreign direct investment at present. However it is thought the Indian government will change the law in the near future.
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