Tesco, the U.K.’s biggest and the world’s third biggest retailer, has announced ending of parleys with Sunil Mittal owned Bharati group about setting up a retail joint venture in India. Sunil Mittal, however, continues to maintain that the talks are still on with the UK retail major.
The talks, according to the prestigious Financial Times, appears to have broken over differences on the pace at which the joint venture should expand. Tesco was, perhaps, not prepared to go as aggressively as Mittal was proposing.
The $ 75 billion strong Tesco, which controls 30% of the UK’s grocery market and 13% of the overall retail market, is mulling over alternative strategies to enter the world’s fastest growing, second most populous, retail market.
Wal-Mart, Carrefour and Tesco, the world’s three biggest retailers, are all working overtime on strategies to enter a market that, according to Retail Consultancy Technopak Advisors, is likely to expand from the present $300 billion to $ 427 billion in 2010 and to $637 billion in 2015.