Marks & Spencer joint venture in India

Food to clothing retailer, Marks & Spencer (M&S), is planning to set up a joint venture in India. According to unnamed sources, there are 3-4 Indian partners who are interested in the venture, which will be 51% owned by the British retailer.

M&S, which currently has about 20 franchises operated by India’s Planet Retail, will also sell food and home furnishings under the new format.

M&S is not the only company embarking on expansion in India. Wal-Mart Stores Inc recently signed a joint venture with India’s Bharti Enterprises for a wholesale cash-and-carry operation. Furthermore, Carrefour, the French retailer, is rumoured to be planning a wholesale operation in India.

India’s fragmented retail industry, currently estimated at $350 billion is expected to almost double in the next decade. However, the arrival of foreign retailers and large local firms have generated political concerns and protests by small shop owners.

At present, M&S has 257 overseas stores in 36 countries and believes there is a considerable opportunity to expand their international business and are targeting a 15-20% contribution to group revenues within the next 5 years.

Last month, the group announced that as well growing its presence in India, it plans to expand into the Chinese market.

Furthermore, the group recently announced that it was appointing 18,000 temporary staff in Britain and Ireland in the build-up to the Christmas period.

Story link: Marks & Spencer joint venture in India