Tesco is reported to be in negotiations with India's largest mobile phone company over a £750 million joint venture to set up a supermarket chain on the sub-continent.
According to Thisismoney.co.uk, Bharti Tele-Ventures is keen to establish a retail food business in the region, and the website believes Tesco could take as much as a 49 per cent stake in the new operation.
The link has been made with ex Tesco chairman Lord MacLaurin, whose Vodafone paid £831m a 10 per cent slice of Bharti Tele-Ventures just six months ago. Lord MacLaurin is rumoured to have played a big part in bringing the two groups together.
At present, foreign chains such as Tesco and Wal-Mart are barred from operating in India to protect the country's 9m family-run stores.
Indian government policy has previously barred foreign retailers from operating in the country, in part to protect its 9m plus family-run stores. But a change of stance allows Tesco to take a stake in a domestic retailer without government permission.
India’s retail infrastructure is almost totally undeveloped and as the country's economy is growing by seven per cent a year, there is a growing degree of interest in potential amongst international retail giants.
At the time of writing, Tesco had declined to comment on the article.
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