Click to play videoNew 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.
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