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 in 2012 by the then United Progressive Alliance government.
The present National Democratic Alliance government under Modi is opposed to multi-brand retail FDI but has not reversed the United Progressive Alliance 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.
In March this year, Tesco and Trent had signed a pact, under which the former bought a 50 per cent stake in Trent Hypermarkets Ltd and agreed to pump Rs 850 crore (Rs 8.5 billion) in the venture.
THL, which currently runs 12 stores across Maharashtra and Karnataka, would open stores of 1,000 sq ft to 30,000 sq ft in Pune, Mumbai and Bengaluru under Star Bazaar, Star Market and Star Daily formats, depending on location and size of the properties available, the source said.
“Since they have distribution centres in Mumbai and Bengaluru, it makes sense to penetrate those cities deeper.”
THL would open two or three stores in Bangalore, Pune and Mumbai, the source indicated.
The chain will have 1,000 to 5,000-sq-ft stores under the Star Daily express format; 5,000 to 20,000-sq-ft outlets under the Star Market format; and 20,000 to 30,000-sq-ft
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