The UK’s Tesco is finally here. After having negotiations with many Indian corporates such as Bharti and Bombay Dying, the company said it is going all alone and has partnered with Tata's retail arm, Trent, for a technical tie-up. Philip Clarke , who started as a management trainee at Tesco, is the retail giant's director for Europe and Asia. In a chat with Raghavendra Kamath, Clarke elaborated on his India plans. Excerpts:
What took you so long to make this announcement?
We have operated out of the UK for 14 years. In 1998, we came here to understand the market. When we entered Thailand a couple of years ago, we looked at opportunities in India. It was developing and we watched it for some years and then took a call. We already have a service centre in Bangalore since 2002 and employ 3,000 people. Today's annoucement is the beginning of something great.
Most of the players who have announced the cash-and-carry venture have gone slow. How will you grow the business in the current slowdown?
We are not bothered about the rate of growth, but want to focus on the quality of growth. I am not worried about the future. We will build the business and people will believe us.
Why did you not go for an equity JV on the lines of Wal-Mart and Bharti?
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We are doing it 100 per cent ourselves. It shows that we are committed to it.
Do you see any issues in Indian retail sector?
It is a very exciting market and growing rapidly. Customers demand better prices and better products. We have a history in providing that combination. Beside, we have a proven record in helping farmers achieve international accreditation and helping them reach out to global markets.
Your investment is very low compared with that of other new players?
We have announced £60 million in the next two years.
We have the opportunity to build good business. You are true. Our ambitions for cash-and- carry are not so great.