labels: tata group, electronics - consumer, retail
Tatas to set up electronics retail chain news
03 October 2006

Mumbai: The Tata Group is teaming up with Woolworths Ltd., Australia''s biggest retailer, for setting up a retail chain that will sell electronics goods. The Australian company will provide technical support for the retail chain.

The retail chain would sell 6,000 products in eight categories, tapping rising incomes in the world''s second-fastest growing major economy, Tata Group said in a statement.

The Tata group, with interests from electronics and information technology to steel, currently owns Trent Ltd., which runs the Indian retail chain Westside that sells garments, shoes, perfumes, cosmetics etc through its Westside stores.

Major Indian corporate houses are expanding their presence in the consumer retail business ahead of the opening up of the sector for overseas investments pour into the country. India, with its huge middle class population is aiming for a share of the $219 billion annual spend made by Indians in 2005.

Sales at retail chains in India, the second- fastest growing economy after China, is expected to more than triple to $23 billion by 2010, according to KPMG International.

The government is also holding discussions with Tesco, Wal-Mart Stores Inc., Carrefour SA and other retailers ahead of finalising a foreign investment policy for the country''s retail business.

The $775 billion economy have been expanding at over eight per cent in the past three years and is expected to grow at around nine per cent in the current financial year.

The government partly relaxed investment norms for retail industry in January this year by allowing foreign investments in ``single-brand'''' companies such as Reebok International Ltd., Adidas-Salomon AG and Nokia Oyj to enter the market through joint ventures, on the ground that their products are already available in the market.

Reliance Industries, Shoppers'' Stop etc are also in the rush to expand retail business before restrictions on overseas chains are lifted.

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Tatas to set up electronics retail chain