Trent, the retail arm of the Tata Group, and UK-based retail major Tesco have been in talks regarding an investment by the latter in Trent Hypermarket Limited (THL) and Tesco is making an application to the Foreign Investment Promotion Board in this regard, THL said Tuesday.
"If the application is successful, the intent would be to enter into a partnership where Trent and Tesco will each own a 50 percent stake in THL," THL said in a statement in New Delhi.
THL currently operates 16 stores across the southern and western regions of the country.
The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka. The application envisages a minimum foreign direct investment in line with the applicable multi-brand retail trading policy, it said.
Noel Tata, vice chairman of Trent, said: "The application is a positive step forward in the relationship between the Tata Group and Tesco. We believe that our understanding of the Indian market coupled with Tesco's unparalleled global retail expertise will allow us to leverage the tremendous potential of the market to the benefit of all stakeholders."