Tesco UK

Tesco's products have entered the Indian market through an exclusive agreement with Trent, the retailing arm of the Tata Group.

Around 50 private brands such as Tesco Value, Daisy and All About Men are being sold through Trent's hypermarket chain, Star Bazaar, the Business Standard reported.

Kanaiya Parekh, Tesco Hindustan Wholesale's commercial director, said the products would not be in direct competition to Star Bazaar's.

"Our products are not competing with their products. While we are predominantly in health and beauty, they are in different categories," he said.

Private brands make up half of Tesco's revenue, and the company reported a total revenue of £59.4bn (US$81.8bn) in the 12 months to 28 February, 2009.

The company is also following in the footsteps of US retailer Wal-Mart and German company Metro by setting up cash and carry stores in India.

"Since Tesco sources a lot of items from India, Star Bazaar will be able to derive volume discounts Tesco gets from its suppliers," said Anand Raghuraman of Boston Consulting Group.

"They can also draw more footfalls by marketing them as foreign brands which UK consumers buy."

Star Bazaar operates seven hypermarkets and plans to open a further 11 stores by 2011.