First definitive steps of Wal-Mart's entry in to the Indian retail sector seems to come through with India's Most Admired Knowledge Enterprises in 2006 - Bharti Enterprises Ltd. announcing its joint venture with the global retail giant based in the US.
Speaking to reporters and media persons, Sunil Mittal, Chairman, Bharti Enterprises Ltd stated that Wal-Mart franchisee owned by Bharati Enterprises will be set stores up all over the country.
This joint venture will conform to the current government policy of allowing foreign investment in retail sector like cash-and-carry and logistics, he added.
Pointing to the core consumers of retail sector, the burgeoning Indian middle class with immense buying power, Mittal said “The idea is to give Indians the lowest price everyday."
While major Indian companies like Reliance Industries Limited, Pantaloon Retail Limited, ITC Ltd and several others have already made a beeline to claim share of Indian retail markets, the Bharti-Wal-Mart JV, industry experts fear, will set free “lion amongst the cats.”
Indian retail market is estimated at about US $350 billion, and is likely to grow up to about $550 billion by 2010. This mega deal will now fuel competion among current players throwing in big discounts, mega offers and customer true-value schemes, like never before to attract dedicated clientele.
No details were forth coming but Mittal conveyed that stores will take several months before they open as, "We are talking here about several hundred stores eventually," he rounded off.
Indian consumer, it is hoped, will now get a better deal what with local shopkeepers also bracing alongside departmental stores, shopping malls and mega stores to cash in the shopping mania like never before.
marketing@alchempro.com
