Wal-Mart is to set up a wholesale cash-and-carry business to serve the Indian retail sector, the company announced today (6 August).
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After months of discussions, the US retail giant has finalised a deal to form a venture with Indian conglomerate Bharti Enterprises.
The venture, Bharti Wal-Mart Private Limited, will serve fruit and vegetable resellers, restaurants and kirana stores. Wal-Mart and Bharti will each hold a 50% stake in the venture.
The business will also serve Bharti Retail, a subsidiary of the Indian group, which is setting up a chain of stores in India and to which Wal-Mart will provide “technical support”.
“Wal-Mart’s global expertise in supply chain and logistics will bring enhanced efficiencies across the retail ecosystem,” said Sunil Bharti Mittal, Bharti Enterprises chairman and CEO. “This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India.”
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By GlobalDataThe first wholesale cash-and-carry facility is expected to open by the end of next year. Over the next seven years, the venture is expected to open up to 15 wholesale cash-and-carry facilities across India.
“One of the key reasons for Wal-Mart’s international success is the fact that in every location where we operate, we are local,” said Raj Jain, head of Wal-Mart’s operations in India, who will oversee the India joint venture.
“As a wholesale cash-and-carry business, our endeavour is to work with and develop local suppliers and create local beneficiaries along the supply chain. It is our hope that big and small retailers and businesses will be our customers, take advantage of the efficiencies we provide and derive significant benefits for their businesses.”
