Australian retailer Woolworths has signed an agreement to sell its interest in its wholesale business in India to Infiniti Retail for A$35 million.

Woolworths says it has enjoyed a successful relationship with the Tata Sons, which owns Infiniti Retail, since 2005, providing the retail knowledge and wholesale support to help the Indian company establish and grow the Croma-branded retail chain which now numbers 85.

However the Australian company has sold its consumer electronics business in Australia for a nominal $20 million, walking away from the category to focus on its core food, liquor and gambling interests.  

Both parties entered into this venture with the intention of merging the wholesale and retail businesses once FDI regulations are relaxed.

“Over the last six years we have had an excellent relationship with them and when they were exiting the business we were only happy to take over,” said Infiniti Retail MD and CEO Ajit Joshi.

“We announced the company’s strategic priorities in November 2011 which included a review of our portfolio of assets, particularly our participation in the consumer electronics category, with a view to maximising shareholder value,” said Woolworths CEO Grant O’Brien.

“These businesses were a small part of Woolworths and this divestment will allow us to be fully focused on the core parts of our business.”

GB