Dec 28, 2012: In a major move which may give a Philip to fresh and processed foods industry in India, Tesco Plc has set up an Indian subsidiary to source fresh and processed foods for its global stores. Tesco which already sources 7% of its total fresh and processed food needs from India aims to increase the share as part of trimming costs and to develop local expertise. Among the things which they would be exploring in India as part of sourcing would be fruits, rice and marine products. Tesco till now was sourcing merchandise and apparel from India through its liaison offices in Delhi and Bengaluru. Tesco has a franchisee agreement with Trent Ltd., Tata’s retailing arm in India and there are plans of it entering directly into the estimated USD 400 billion Indian retail market. This move will help the company to build back end operations and establish suppliers before entering the Indian retail market.
