Monday 30 December 2013

FIPB approval for Tesco-Tata multi-brand retail JV

FIPB (Foreign Investment Promotion Board) has cleared Tesco's proposal for investment of nearly $110 million in Trent. This would effectively make Tesco the first foreign multi-brand retailer to invest in India after India's policy initiatives to allow for FDI in multi-brand retail.

The Walmart-Bharti joint venture was expected to expand further in multi-brand but the two have since parted ways with Walmart opting to focus on the cash and carry wholesale business, keeping the 'Best Price' brand while Bharti Retail will take forward its front-end retail business with 'Easy Day' stores across India. The problems in the Walmart-Bharti JV crept up post allegations that officials from the firm or the consultants hired by the firm had indulged in unethical practices. Investigation was also being carried out in US under FCPA (Foreign Corrupt Practices Act) on allegations that Walmart had bribed officials for licences in Mexico.

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