British grocery retailer Tesco and Indian conglomerate Tata have invested another US$8.9 million into their joint venture Trent Hypermarket.
The move marks the first major capital investment in the business by the partners in two years, and comes on the heels of the appointment of new CEO Martin Bailie.
While revenues expanded 22.5 percent to $164 million in the previous financial year, the business’s losses have also grown. According to IGD Retail Analysis head of insight – Asia Pacific Nick Miles, Tata has been in talks with Walmart for renewed investment, following concerns over Trent’s relatively modest expansion in the territory.
“The renewed investment from both parties should put talks on any new investors on hold for a while,” said Miles.
“Having exited – or in the process of selling its operations in – China, Thailand, Malaysia and Poland in the past 12 months, perhaps Tata was nervous of Tesco’s commitment to the market. However, the investment signals that it remains committed to the JV.”