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Rediff.com  » Business » Tesco to up sourcing from India by 66%

Tesco to up sourcing from India by 66%

April 11, 2006 20:20 IST
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UK-based retailer Tesco plans to increase sourcing from India by about 66 per cent this year.

It intends to source products worth £100 million from India this year as against pound 60 million last year.
Meena Ganesh, chief executive officer of Tesco Hindustan Service Centre (HSC), said, "Tesco is looking at sourcing household utensils and garden instruments from India, apart from garments, in this financial year. Ahmedabad, therefore, is on Tesco's radar as a potential base for suppliers this year. A majority of the current suppliers are from Bangalore, Tirupur and Delhi."

Tesco HSC has been working on various applications that help in space management, continuous replenishment, queue management and so on.

It is also working on radio frequency identification technology. The company is setting up its third building in Bangalore that will be operational in the next few months.

Tesco HSC is planning to increase headcount to 2,000 by the end of this year. Tesco has invested "upwards of pound 25 million" in India so far.

HSC is the global services arm of Tesco focussed on IT and business services.  It is the central hub for the development and implementation of Tesco in a Box, which is typically an integration of a set of enterprise applications.

"We have deployed it in Turkey and will be rolling it out in China and Japan this year. We are also closely working with the US counterparts as Tesco plans to start trading in the US by the middle of next year," Ganesh said.

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