The UK’s biggest retail outlet, Tesco, plans to make an entry in the wholesale Indian market, the supermarket group announced yesterday and has commited to invest $112 million (Rs 480crore) in the first two years, reports Economic Times.

The wholesale, cash-and-carry outlets will be initially set-up in Mumbai and will sell fresh food, grocery and non-food products to small retailers, grocery stores, restaurants and other business owners. Nothing will be sold directly to individuals, because Indian wholesale format, that allows 100% foreign direct investment (FDI), restricts the wholesaler from direct-selling to individuals.

Tesco group chief executive, Sir Terry Leahy, said 'Our wholesale cash-and-carry format will bring improved value, range and service to thousands of Indian businesses”.

The dominating retail group, with sales of $99.9 billion has also signed an exclusive franchise agreement with Tata’s retail arm Trent. Leahy added, 'We are delighted to be working with Tata, one of India's largest and most respected business groups. Our agreement will enable us to share our international retail expertise, supporting Trent in the development of their Star Bazaar hypermarket business and benefiting Indian consumers.' Star Bazaar will also receive merchandise from the UK chain.

Tesco has offices in Delhi, Bangalore and Tirupur and employs nearly 3,000 Indian staff at its Hindustan Service centre in Bangalore that provides information technology, financial and business services to the entire Tesco Group worldwide. X