India is expected to usher in legislation that will allow multinational supermarket chains to operate in the country for the first time, according to a report published by Money Control. The move would introduce a new layer of competition to the Indian personal care market, with private label challenging the hold that multinationals such as Colgate and successful home-grown brands such as Patanjali currently enjoy.

The government is said to be considering easing regulations that prevent multi-product retailers setting up shop in the country, allowing food outlets to sell personal care and home products for the first time.

If the new rules are passed, US and European retailers who have expressed interest in setting up shop in India will be allowed to sell soap, cosmetics and toiletries in food outlets, provided the value of their personal care offer does not exceed 20 percent of food merchandise.

The Indian food and grocery market is the world’s sixth largest, valued at US$39.71 billion.