U.K. retailer Tesco confirmed a joint venture with India's Tata Group to bring 12 retail stores, offering food, grocery and home products, to the Asian nation.

The 50:50 joint venture with Trent Hypermarket Limited (THL), operator of the Star Bazaar retail business in India, comes after approval from the Indian Foreign Investment Promotion Board and will include an £85 million (US$140.2 million) investment from Tesco.

The stores estblished under the deal will operate under the names "Star Bizaar" and "Star Daily" in the southern and western regions of India.

The agreement builds off of  wholesale supply and franchise /technical service agreement between Tesco and THL that has functioned in India since 2008.

In 2012, the Indian government eased regulations for foreign direct investment in multi-brand retail, creating possibilities for foreign retailers and hypermarkets to conduct business in the nation. Such operators had previously been limited to wholesale.

Tesco was the first foreign company to make multi-brand segment moves in India in December.

Related story: India’s foreign investment policy may attract modern retail

Tesco’s Indian retail tilt to deepen ties with Tata

Photo: Tesco in the U.K.

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