A serious dispute between Woolworths and its Indian joint venture partner Tata Group appears resolved, according to newspaper reports from India.

Doubts were raised about the future of the relationship after the initial five year joint venture agreement to run the Croma electrical goods chain came to an end with the Tata family apparently opting not to renew it.

The Economic Times reports today that a top level meeting with Woolworths CEO Grant O’Brien and Ratan Tata in early November helped get the partnership back on track.

“This also means that the Tatas could be a potential partner for the Australian retailer for its next phase of growth in India; that’s because the agreement between the two partners, which has now been renewed and reworked, gives the Tatas the right of first refusal for potential partnerships in future,” The newspaper reported, citing people familiar with the agreement.

In a statement sent to suppliers, signed by Hagai Arad, MD of Woolworths Wholesale (India), and Ajit Joshi, MD&CEO Infiniti Retail, said the operation would “continue to operate as (it) did in the past”.

Woolworths Wholesale (India) is a wholly-owned subsidiary that supplies to Croma stores.

The Economic Times had earlier reported that Woolworths was exploring legal options to challenge Infiniti Retail’s decision to call off the partnership.

With India’s Government still not approving foreign direct investment in the nation’s retail sector (a decision to relax the rules earlier this month was reversed after only several days amidst political protests), minority partnerships with local businesses remain the only way companies like Woolworths can get a share of the fast-growing organised retail market.

Tata subsidiary Infiniti operates over 75 Croma and Croma Zip stores across the country.