Tesco Forms JV With Trent For Multi-brand Retail In India


MUMBAI: British retail major Tesco announced forming of an equal joint venture with Trent, a part of the Tata Group, by picking up 50 percent stake in Trent Hypermarket for about 85 million pounds. "Following its previous announcement and receipt of approval from the Indian Foreign Investment Promotion Board, Tesco has entered into an agreement with Trent, a part of the Tata Group, to form a 50:50 Joint Venture in Trent Hypermarket," the company said in a statement.

THL operates the Star Bazaar retail business in India. Tesco's investment will be around 85 million pounds, it added. "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," Tesco said. The stores are operated under the 'Star Bazaar' and 'Star Daily' banners, and spread across the Southern and Western regions of India, it added.

Last December, Trent and Tesco had announced they have sought regulatory approval to enter into a partnership where each would own a 50 percent stake in THL, owned by the Tatas. Tesco became the first global retailer to apply for multi-brand retailing after the government allowed 51 percent FDI in the segment in September, 2012. The Foreign Investment Promotion Board had cleared its proposal on December 30. Since 2008, Tesco has had a wholesale supply and franchise/technical service agreement to supply merchandise and provide technical knowhow and support to THL in India.

Trent stock price

On March 24, 2014, at 10:25 hrs Trent was quoting at 1050.00, down 4.3, or 0.41 percent. The 52-week high of the share was 1339.80 and the 52-week low was Rs 902.00. The company's trailing 12-month (TTM) EPS was at 22.85 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 45.95. The latest book value of the company is 461.02 per share. At current value, the price-to-book value of the company is 2.28.

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Source: PTI