Australia's Woolworths eyeing retail in India

MUMBAI - Australia's largest retailer, Woolworths Ltd. , is eyeing India's retail market for when the government opens it up to foreign firms and has a long-term interest in New Zealand, according to its former CEO.

The company has formed an agreement with India's Infiniti Retail Ltd., part of the Tata group, which opened its first store on Monday in Mumbai to sell consumer goods and electronics.

The venture is 100 per cent owned by the Tata group and Woolworths will supply it. But the Australian firm will evaluate its options if the government liberalises investment rules for foreign retailers, former CEO Roger Corbett, who is now a Woolworths consultant, told Reuters in an interview.

"If they were to open up, yes certainly Woolworths Australia would be very interested in looking at opportunities in India, but those opportunities would be in partnership with Tata," said Corbett, who retired as CEO at the end of last month.

He said India would attract some of the best global retailing firms if the sector were deregulated and Woolworths itself would look at opportunities beyond electronics and durables.

"Food retailing and general store merchandising are certainly aspects of our business that we would consider bringing to India," he said.

Retail consultancy Technopak Advisors has estimated the size of India's retail industry at about US$300 ($462.74) billion and forecast it to grow to US$427 billion in 2010.

Presently, branded retail makes up only 3 per cent of the market, compared to China's 20 per cent and Thailand's 40 per cent.

India's top private firm, Reliance Industries Ltd. , is investing US$5.6 billion in retail and US giant Wal-Mart Stores Inc. is waiting in the wings for the day the government lifts restrictions.

Corbett said Woolworths also had a long-term strategic interest in New Zealand, where it bought 10 per cent of the country's top retailer, The Warehouse Ltd. , last month.

"That stake is a strategic long-term stake," he said.

"By that we mean to have a position so that we have got a place if you like at the table -- I don't mean at the board table, at the table to participate in anything that unfolds in the future."

- REUTERS