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Tata-Tesco JV To Open 50 Retail Stores, Distribution Centre In Hyderabad

• By  Textile Excellence
• July 14, 2017

Hypermarket, a 50:50 joint venture between Tata and British retailer Tesco, plans to open 50 retail stores in Hyderabad in the next 2-3 years apart from setting up a distribution centre, said a top company executive.

The expansion is part of the 200 stores planned for Mumbai, Pune, Hyderabad and Bengaluru. The retailer currently has 45 stores across these cities. Speaking to journalists on the sidelines of the launch of Star Hyper's first store in Hyderabad, Jamshed Daboo, managing director, Trent Hypermarket said, "Majority of our upcoming stores would be in the 8,000-10,000 sft segment under which Star Market operates and will be our growth driver. This segment requires lesser space and helps us to stay in city hotspots, closer to the customer."

He added that while a Star Market store entails an investment of Rs 3-4 crore, the distribution centre will see Rs 25 crore in investments. The company has identified a 70,000 sft space for its distribution centre that will cater to the Hyderabad market. It already has two distribution centres that cater to Mumbai-Pune and Bengaluru stores.

On the expected impact of the goods and services tax (GST) on the retail industry, Daboo said that it was positive for the industry. "GST has simplified the logistics part of it which will bring efficiency in our services," he said.    

Textile Excellence