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UK supermarket chains apply for sourcing centres in India
Feb '13
Tesco PLC and Sainsbury – two well-known British supermarket chains – have applied to the Indian Government for opening sourcing centres, Minister of Commerce and Industry Anand Sharma has said.
Speaking to reporters on the sidelines of a conference in Mumbai, Mr. Sharma said the two departmental chains submitted their applications during the visit of Prime Minister David Cameron to India.
However, the Minister did not divulge any details about the kinds of products that the two companies propose to source in India or the countries where those products would be used or sold.
Tesco already has an agreement in place with Tata Group’s Star Bazaar stores, where in the supermarket chain provides know-how to the Indian company about retail operations.
In September 2012, the Indian Government took a decision to allow up to 51 percent foreign direct investment (FDI) in the country’s multi-brand retail sector, which has opened doors for global retailers like Tesco and Walmart to enter the Indian market.
However, global retail players who enter the Indian market through the FDI route would have to source 30 percent of their inputs from small and medium-sized industries in India.

Fibre2fashion News Desk - India

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