CORRECTED- M&S seen to shortlist Indian partners

Corrects monetary conversion to 169.6 billion pounds in paragraph 8

MUMBAI (Reuters) - Marks & Spencer has shortlisted at least three potential venture partners for India and will finalise its plans within a month, the Economic Times reported on Tuesday, citing unnamed sources.

M&S, Britain’s biggest clothing retailer, has shortlisted audit firm Lodha & Co, and has been in talks with Trent and the Mahindra Group, it said.

M&S already has about 20 franchise stores in India operated by Planet Retail, but now wants to set up a joint venture with 51 percent holding, the paper said.

M&S declined to comment, the paper said.

The office of Lodha & Co could not be immediately reached. A Mahindra official declined comment and a spokeswoman for Trent did not immediately return a call seeking comment.

Single-brand foreign retailers are allowed to take up to 51 percent in a joint venture with a local partner. Multiple-brand retailers are permitted franchise and licence operations.

M&S recently unveiled a major push into international markets including China and India, which it expects will account for 20 percent of revenue in five years, up from less than 10 percent.

India’s fragmented $350 billion (169.6 billion pounds) retail industry is forecast to nearly double in size .....continued below

Advertisement starts

Advertisement ends

Wal-Mart Stores has a joint venture with India’s Bharti Enterprises for a wholesale cash-and-carry operation, and Carrefour is expected to launch wholly owned wholesale operations and announce an Indian franchise partner soon.

(Reporting by Rina Chandran; Editing by Ranjit Gangadharan)