Bharti hopeful of 50:50 JV with Wal-Mart for retail stores

Bharti Enterprises has started talks with Wal-Mart and is hoping to form a 50:50 joint venture to roll out retail outlets in India, a top company official has said.

The two companies have an equal partnership in wholesale business and the Indian partner is hopeful of replicating it in the retail business, following government's decision to allow up to 51 per cent FDI in multi-brand retail.

Bharti Enterprises Vice Chairman and MD Rajan Bharti Mittal said "talks have started" and the company is hopeful that the nature of their relationship, under which Wal-Mart became an equal partner in wholesale business despite having a chance of bringing in 100 per cent FDI, would continue.

"All I am trying to say here is that when there is opportunity to go 100 per cent in wholesale, they had 50:50 with Bharti. Now, with the opening up of the front-end, the discussions are on the table and hopefully the relationship that we have enjoyed in the last five years will continue," Mittal said in CNN-IBN TV programme Devil's Advocate.

When asked if the retail JV will still be a 50:50 one, he said: "That's what I am trying to say. That's the relationship we have despite 100 per cent being open (in wholesale)".

Mittal also dismissed various reports questioning the impact and work ethics of Wal-Mart terming them as "myth".

"That's not true to be honest. That's a myth of course. You really look at the US, where they do USD 300 billion business, they have about 11 per cent of market share. They save about USD 230 billion worth to the consumers and two million jobs.

"So, that's a myth that they are going to squeeze from both sides," he said when asked about allegations on Wal-Mart paying less to farmers and hiking prices for consumers after capturing the market.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • But what’s the big deal about Modi’s first hundred days?

    That Indians believe more in symbolism than substance is a fact that is well acknowledged and chronicled.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Purnendu Ghosh

Memory is a collage of the old and new

We are all fitted with pressure valves. Some of us ...

Shona Adhikari

The enduring legacy of <em>The Last Supper</em>

This week’s column features a work of art that is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture