M&S expanding footprint in India

M&S is facing tough trading conditions in the UK

Marks & Spencer has agreed to form a joint venture with Indian retail firm Reliance to tap into the consumer spending power on the sub-continent.

It will invest an initial £29m for a 51% stake in the new company, with plans to open at least 50 new stores in India over the next five years.

The move comes a month after it bought a majority stake in its eastern European franchise owner COMS.

M&S wants its overseas operations to bring in 15-20% of revenues by 2011.

"India is a very exciting opportunity for Marks & Spencer and a market where there is the potential for M&S to become a major retail brand," said M&S boss Sir Stuart Rose.

With pressure on UK households as mortgages, food and fuel bills get more expensive, M&S has been looking abroad to grow its profits, particularly in emerging market juggernauts.

But the iconic British retailer has recently come under the spotlight for a different reason.

Sir Stuart's move to take over the role as executive chairman, while remaining chief executive - a move in breach of corporate governance guidelines - has provoked anger from key shareholders.