Like most other global retailers, Tesco Plc, one of the top three in the world, is waiting in the wings for foreign direct investment in multi-brand retail to be allowed. The UK-based company’s executive director, Lucy Neville Rolfe speaks to Raghavendra Kamath on the sidelines of the India Economic Summit. Edited excerpts:
What are the three biggest challenges you have to overcome if the government opens up FDI?
Diversity and scale of India are such that if you are allowed to enter the country , now or at a future time, how do you make sure that you are doing the right things in different areas for the consumer. How do you get alongside that? That’s why something like having a Bangalore centre is so good. We are learning a lot about India in the right way.
Are you satisfied with the performance and growth of Star Bazaar store run by Tatas, with whom you have a partnership?
The Tatas are very good partners, I am pleased with the improvement.
But Star Bazaar has a lot of competition from other retailers such as Reliance Retail, Aditya Birla Retail who have set up large hypermarkets now...
India is a very big country. A lot of consumers want good products; I think there is a good potential here.
What is the kind of growth you expect from Indian operations this year?
We source from India to the extent of £270 million. We have a collaboration with Tatas and have our support centre in Bangalore. All the three areas are showing good growth.
What are the three biggest lessons you have learnt from India?
One is you have very high-quality people here. Two, the supply chain very entrepreneurial. Third, India is amazing consumer market where people are getting richer and better educated, and offer a good potential.
When do you think FDI will open up in multi-brand retail in India?
We would be happy if somebody tells us that. We are waiting for the moment.
