WalMart/India - from the Indian Press :
NEW DELHI: After months of speculation, Bharti Enterprises on Monday said it had tied up with Wal-Mart Stores Inc, the world’s largest retailer, for a 50:50 joint venture.
While foreign retailers are not allowed to open stores in India that stock more than one brand, Wal-Mart, with $315 billion in revenues, will manage procurement, inventories and logistics.
The Indian partner will set up stores under a franchise arrangement, Bharti joint MD Rajan Mittal said. Bharti said it will open several hundred stores starting next year but the details, including the size of investment and branding, are still to be finalised.
"It is going to be a large investment. We are going to be a big player in the market," said Bharti chief Sunil Mittal, adding that he wanted the first store to start selling products from August.
Bharti is floating a new company for the retail venture. "The joint venture... will operate in areas where the government allows foreign investment in retail, like cash-and-carry and logistics," Mittal said.
Bharti is looking at all formats — hypermarts, supermarkets and even smaller stores — to enter the $300-billion domestic retail sector.
Monday’s announcement puts an end to months of negotiations that Bharti has had with the likes of UK’s Tesco and French retailer Carrefour.
For Wal-Mart, the deal offers an opportunity to expand its presence in India. It is already using the country as a large base for sourcing products like apparel, shoes and handicrafts worth over $1.5 billion.
Even as the government dithered over allowing foreign players in retail, the sector has seen a flurry of activity, with large Indian corporate houses like Mukesh Ambani-controlled Reliance group having already opened stores, while others, like the AV Birla group, have announced their intent to provide competition to the established players like Pantaloon and smaller retailers like Subhiksha. The Tatas are already in the business and are expanding their presence.
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