IBNLive.com: Breaking news from India

 

Font Size A+A-

Walmart-Bharti ink deal to start operations in India

TimePublished on Mon, Aug 06, 2007 at 22:04, Updated on Mon, Aug 06, 2007 at 22:39 in Business section

TWO TO TANGO: Bharti and Wal-Mart would hold equal stake in the joint venture.

TWO TO TANGO: Bharti and Wal-Mart would hold equal stake in the joint venture.


ibnlive.com is on mobile now. Read news, watch videos
be a Citizen Journalist. Log on to m.ibnlive.com NOW!

Photogallery

Find us on Facebook | Join IBNLive community

Stay ahead with G-Talk Buddy | Click now!

Ads by Google

New Delhi: Retail giant Wal-Mart Stores Inc has inked its entry into India. It has signed a deal with Sunil Mittal-promoted Bharti Enterprises that models their retail joint venture in the wholesale cash-and-carry business.

"This venture (Bharti Wal Mart Private Ltd) is committed to bring the whole eco-system together and the wholesale cash-and-carry business will cater not only to the organised retailers but also to small kirana stores, fruit and vegetable resellers, restaurants and other business owners," Bharti Enterprises Managing Director Rajan Mittal told PTI.

The business model falls under the 100 per cent FDI route and does not need an approval from the Foreign Investment Promotion Board (FIPB).

Officials say Wal-Mart already sources $600 million worth of products from India. And now 90 per cent of the products on offer in the Bharti-Wal-Mart stores will be sourced directly from domestic farmers.

Bharti and Wal-Mart would hold equal stake in the joint venture, which would be business-to-business venture and would focus on setting up of supply chain and back-end logistics infrastructure.

Bharti and Wal-Mart have signed two agreements pertaining to the joint venture and technology sharing and training of human resource.

As per the agreement, Wal-Mart will provide technical support to Bharti Retail, the 100 per cent subsidiary of Bharti Enterprises, which will own and manage the retail stores.

The new venture is expected to employ about 5,000 and sell a wide range of products, including fruits and vegetables, groceries and staples, footwear, clothing, consumer durables and other general merchandise items.

On the branding issue of Bharti Retail, Mittal said the company had almost completed a study, based on which it would take a decision.

The companies expect to open their first store towards the end of 2007.

Ads by Google
Related Ads:

Copyright © IBNLive.com. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of IBNLive.com is prohibited.

Read more comment »

Every time I make a trip to the loo in office, there's always someone who wants to tell me how much weight I've lost

Follow Megha Mamgain as she burns the extra kilos on CNN-IBN, Sat: 12:30 pm,
6:30 pm
and Sun: 2:30 pm

About Us | Disclaimer | Careers @ IBN | RSS | Podcast | Contact Us | Feedback | Advertise With Us | Connect.in.com

© 2009 IBNLive.com India. All Rights Reserved. A Web18 Venture

CNN name, logo and all associated elements ® and © 2009 Cable News Network LP, LLLP. A Time Warner Company. All rights reserved. CNN and the CNN logo are registered marks of Cable News Network, LP LLLP, displayed with permission. Use of the CNN name and/or logo on or as part of CNN-IBN does not derogate from the intellectual property rights of Cable News Network in respect of them.

Site powered by URBANEYE