INDIA: Tesco-Tata JV Reports Strong FY Growth

Trent Hypermarket, the 50:50 joint venture between Tesco and the Tata Group, has reported a strong rise in sales for its last fiscal year.

For the year ending March 2016, overall sales were up 7.5% to Rs.8.5bn, on like-for-like growth of 9.2%, and a net loss of Rs.447m.  In the previous fiscal, the JV had recorded a slight decline in overall sales, a 1.1% LFL sales uptick, and a net loss of Rs.653m.

Trent operates the Star Bazaar banner, which has three formats — Dailies, Market and Hyper. It currently operates just 24 outlets, having been slow to grow, but opened seven new outlets in the last fiscal year alone.

Trent has been restructuring its operations to improve efficiencies, and said that going ahead, its focus will remain primarily on food and grocery.  Jamshed Daboo, Md of Trent, noted: “We source most of our vegetables directly from farms hence fulfilling a strong customer promise around quality and price. Even during the current challenges to access fresh produce in select markets, we have ensured our customer’s need is not compromised in any way”.