Bharti Enterprises has tied up with the world’s largest retailer Wal-Mart Stores Inc, in a 50:50 joint venture, to open several hundred retail stores across the country.
While foreign retailers are not allowed to open stores in India that stock more than one brand, Bharti will set up stores under a franchise arrangement, while Wal-Mart, will manage procurement, inventories and logistics.
Bharti is floating a new company for the retail venture and is likely to operate in areas where the government allows foreign investment in retail, like cash-and-carry and logistics. For the purpose it is also looking at all formats — hypermarts, supermarkets and even smaller stores — to enter the $300 bn domestic retail sector.
With $315 bn in revenues, the deal offers an opportunity for Wal-Mart to expand its presence in India. The Company currently relies on India as a sourcing hub for apparel, shoes and handicrafts worth over $1.5 bn.
