Comments on: Tesco will supply goods to Tata as it plans to open grocery stores in India http://www.profitedition.com/tesco-will-supply-goods-to-tata-as-it-plans-to-open-grocery-stores-in-india/ Mon, 22 Mar 2010 02:03:32 +0000 http://wordpress.org/?v=2.5.1 By: Tesco will supply goods to Tata as it plans to open grocery stores … http://www.profitedition.com/tesco-will-supply-goods-to-tata-as-it-plans-to-open-grocery-stores-in-india/#comment-47 Tesco will supply goods to Tata as it plans to open grocery stores … Sat, 16 Aug 2008 11:01:19 +0000 http://www.profitedition.com/?p=445#comment-47 [...] Go to the author’s original blog: Tesco will supply goods to Tata as it plans to open grocery stores … [...] [...] Go to the author’s original blog: Tesco will supply goods to Tata as it plans to open grocery stores … [...]

]]> By: Gautam Kshatriya http://www.profitedition.com/tesco-will-supply-goods-to-tata-as-it-plans-to-open-grocery-stores-in-india/#comment-37 Gautam Kshatriya Fri, 15 Aug 2008 11:21:31 +0000 http://www.profitedition.com/?p=445#comment-37 I think that the alliance between Tesco and Trent, while essentially amounts to a franchise agreement and not a joint-venture is good for both parties - especially for the latter, as I point out in my post (check it out at: http://www.moneyvidya.com/blog/?p=250). While Trent has to pay a fee for access to Tesco's expertise (IT systems, infrastructure mgmt etc.) I think that this is a small price to pay for things that are essential requisites for cost efficiency in this space. As you pointed out in your article - Tesco also benefits, by learning how to operate in an Indian environment before jumping in independently into this format. You might also be interested to read my analysis on what impact the arrival of large format organised retail has on consumer goods manufacturers margins: http://www.moneyvidya.com/blog/?p=258 Gautam Kshatriya gautam.kshatriya@moneyvidya.com http://www.moneyvidya.com I think that the alliance between Tesco and Trent, while essentially amounts to a franchise agreement and not a joint-venture is good for both parties - especially for the latter, as I point out in my post (check it out at: http://www.moneyvidya.com/blog/?p=250). While Trent has to pay a fee for access to Tesco’s expertise (IT systems, infrastructure mgmt etc.) I think that this is a small price to pay for things that are essential requisites for cost efficiency in this space.

As you pointed out in your article - Tesco also benefits, by learning how to operate in an Indian environment before jumping in independently into this format. You might also be interested to read my analysis on what impact the arrival of large format organised retail has on consumer goods manufacturers margins: http://www.moneyvidya.com/blog/?p=258

Gautam Kshatriya
gautam.kshatriya@moneyvidya.com
http://www.moneyvidya.com

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