Tatas to set up electronics retail chain

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.