Tesco to open cash and carry in India

Booker’s fledgling overseas venture in Mumbai will face competition from Tesco by the end of the year, according to sources in India.

The DNA website carries an interview with Mike McNamara, operations development and IT director of Tesco, and says it will open its first cash and carry outlet in Mumbai by the end of 2010. Booker opened its first overseas depot in Mumbai at the end of September.

Foreign businesses can only operate in the Indian retail sector in partnership with a local company and Tesco has had a partnership with Tata’s retail arm Trent since 2008.

However, there are no such restrictions on cash and carry and McNamara said the cash and carry business would be wholly owned by Tesco.

He added: “Tesco will rely on emerging markets of China, South Korea and India for its future growth and India is very much in our radar.”

When the Mumbai depot opened Booker chief executive Charles Wilson said that if it won approval there was scope for more depots in Mumbai and other locations in India.

In its latest trading report two weeks ago Booker said there were good customer numbers and spending levels, and it was increasingly confident it could serve the Kirana stores, street traders, caterers and suppliers of India.