Global retail giant, Tesco, on Tuesday said that it would develop a wholesale cash-and-carry business in India with a 60-million pounds investment and have an exclusive franchise agreement with Tata's Trent for hypermarket business.

The wholesale business of Tesco will initially be based in Mumbai and will offer a comprehensive range of fresh food, grocery and non-food products to small retailers, restaurants, kirana stores and other business owners, a Tesco press release said.

The 60-million pounds will be the initial investment in the first two years, Tesco said, adding that the business will provide farmers and other suppliers with a highly-efficient route to market.

The UK-based retailer is also entering into an exclusive franchise agreement with Tata group company, Trent, which would allow Trent access to Tesco's retail expertise and technical capability.

On its exclusive franchise agreement with Trent, the release said that the retail arm of the Tata group would be able to draw on the British chain's extensive retail expertise and technical capability to support the development of Trent's hypermarket business, Star Bazaar.

Trent's Star Bazaar is an established player in the hypermarket business in the country having four stores presently and with plans to grow to 50 stores over the next five years, the release said.