The Indian Tiger Economy becomes fair game for supermarket giants

Late yesterday it was announced that the Indian government reached a decision to allow foreign retail groups to invest as much as 51% in so-called “multi-brand retailers” - the Indian equivalent of supermarkets.

This decision enables global players like Tesco, Walmart and Carrefour to finally be able to line up their collective shopping trolleys and loyalty schemes and enter much more aggressively into one of the few remaining countries where they had not previously been able to gain a significant presence.

Given that all three retailers have aggressively expanded in other parts of Asia and that India’s population of 1.2 billion is forecast to keep growing and it ahead of China in terms of being the most populous country in the world, I can only imagine that collective CEOs of these retail giants are already lining up their advisors with the instruction “buy buy buy”.

I can foresee the first rumours breaking imminently as three cash rich companies and aggressive pursuers of M&A deals set their sights on some of India’s more attractive targets. I give it no more than two weeks before we see the first stories start to emerge!