Magazines Archives - 2007 August

Bharti, Wal-Mart seal joint-venture deal at last
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BHARTI ENTERPRISES, one of India’s leading business groups, and Wal-Mart Stores Inc, the world’s largest retailer, have sealed a deal to set up a 50-50 joint-venture company, ending months of speculative reports in the media about the impending deal.

The joint-venture company, named Bharti Wal-Mart Private Limited, will manage the wholesale cash-and-carry business as well as the back-end supply chain in India in accordance with government guidelines.

In an effort to provide small retailers and business owners with a profitable and efficient edge, a broader range of products at competitive wholesale prices will be made available.

Before the end of next year, the group will roll out its first wholesale cash-and-carry store, and will establish up to 15 such centres over the next seven years, expanding its workforce by about 5,000 employees. At the same time, the group’s subsidiary, Bharti Retail, will receive technical support from Wal-Mart to set up its chain of stores in the country.

Speaking on back-end logistics management, Bharti Enterprises chairman and group CEO Sunil Bharti Mittal expressed his confidence that the venture would further enhance efficiency throughout the retail system.

“Wal-Mart’s global expertise in supply chain and logistics promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India,” he added.

Wal-Mart’s vice-chairman, Mike Duke, pointed out that the group would like to leverage its global scale to transform some of these suppliers into exporters with access to Wal-Mart’s global markets.

“We are delighted that, in Bharti, we have a well-respected partner which has a deep understanding of the local market,” said Duke.

Likewise, the country president for Wal-Mart’s operations in India, Raj Jain, who attributed Wal-Mart’s international success to its local appeal, said: “In every location where we operate, we are local.”