| The retail shops will be owned by Bharti Enterprises under the Wal-Mart franchise and brand name. It is a big and significant project for us. We can bring down the price of commodities each day. IT IS official now. Bharti Enterprises has joined hands with the United States supermarket giant Wal-Mart to set up retail stores in India. The two companies signed a Memorandum of Understanding on 27th Nov 2006 under which they will jointly explore business opportunities in India. In a joint statement, the two companies, with its in-depth knowledge of India’s fast growing consumer market, and Waymart, with its extensive global retail experience, shared the same commitment to building relationships with producers to provide great quality at reasonable prices to consumers. |
Featured: - Wal-Mart is known to offer value to consumers while providing profitable linkages to the producers and growers.
- Wal-Mart has shown it is confident about the changes in regulatory framework occurring soon, and the retail sector growing rapidly.
- A few stores would be launched by mid 2007, and increased to several hundreds by the end of the year.
- India’s retail market, comprising both the organised stores and the traditional neighborhood retail shops, is currently worth around Rs 13,50,000 crore, according to a recent PricewaterhouseCoopers publication.
- The share of organised retailing, at present a mere three percent, is growing at over 30 percent annually. It is expected to be about 10 percent by 2010. According to an analyst at KSA Technopak, the Indian retail market will be 29,00,000 crore by 2015.
Mukesh Ambani (chairman of Reliance Industries Ltd) is looking forward to big changes in the sector. Ambani said there was space for six to eight major players in India. The Indian retail market is entering an exciting phase. The Indian retail business will transform by providing true value to customers and the sellers. Wal-Mart’s entry into India is a watershed development for Indian industry. It is not just the biggest retailer but also the largest company in the world. A multi-brand company like Wal-Mart cannot own a single share at the retail end, which is all that is presently allowed. Wal-Mart may appoint a franchisee for the front end and own the back end. This is the model it might adopt. Under current Indian regulations, 100 per cent FDI is permitted in wholesale cashand-carry, 51 per cent in single brand retailing, and 100 per cent for products manufactured entirely within India.
|
Shopping
Wal-Mart in India
