Marks & Spencer to set up in India

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MUMBAI (Reuters) - Marks & Spencer , the country’s biggest clothing retailer, plans to set up a joint venture in India, the Economic Times said on Monday.

Three or four Indian firms are interested in partnering Marks & Spencer in the venture, which will be 51 percent owned by the British firm, the paper said, citing an unnamed industry source.

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, the paper said.

India permits single-brand retailers to own up to 51 percent in a joint venture with a local firm. Multiple-brand retailers are restricted to franchise and license operations.

Marks & Spencer Chief Executive Stuart Rose recently unveiled a major push into international markets, which he expects will account for 20 percent of revenues in five years, up from less than 10 percent now.

M&S planned to enter China on a wholly owned basis and was seeking to trade up to bigger formats of around 40,000 sq. ft. in India, with a focus on New Delhi, Mumbai and Bangalore, Rose said earlier this month.

Wal-Mart Stores Inc recently signed a joint venture with India’s Bharti Enterprises for a wholesale cash-and-carry operation. Metro AG and Shoprite Holdings also have cash-and-carry stores in the .....continued below

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French retailer Carrefour is reported to also be planning a wholesale operation in India.

India’s fragmented retail industry, estimated at about $350 billion, is forecast to nearly double in size by 2015. But the entry of foreign retailers and large local firms have triggered political concerns and protests by small shop owners.

(Reporting by Rina Chandran; Editing by Ranjit Gangadharan)