Wal-Mart, Bharti in wholesale business talks
By Our Corporate Bureau | 22 Feb 2007
Mumbai: Global retail leader Wal-Mart is in talks with Indian corporate major Bharti for a joint venture in the wholesale segment and is exploring the possibility of investing in backward linkages.
A team of executives from Wal-Mart Stores Inc, led by vice chairman Michael Duke is in Mumbai to also look into the retail business trends and hold meetings.
"Our arrangements with Bharti for cash-and-carry wholesale business are still being discussed. We look forward to partnering with them to build backward linkages with farmers and suppliers through a robust and efficient supply chain," a Wal-Mart spokesperson said in a statement.
"A cash and carry wholesale operation has the potential to provide much needed support to small business owners and retailers by selling them quality merchandise at competitive prices, " he said, adding, "We are conducting business studies concerning the feasibility of investing in establishing backward linkages with suppliers and farmers."
"It is a routine business visit to check out the market and meet people," he said. Mumbai is home to a wide range of retail formats, ranging from hypermarkets to tiny family-run kirana (grocery) stores.
Wal-Mart is increasingly sourcing from India for its international operations. In 2006, the retailer sourced nearly $600 million in goods directly from suppliers in India for the company's stores around the world.
Rajan Mittal, joint managing director, Bharti Enterprises, said earlier this week that the two firms were in discussions for cash-and-carry operations and logistics.
The Wal-Mart team is expected to visit key ministers and joint venture partner Bharti Enterprises in New Delhi.