Bharti & Wal-Mart join hands for wholesale business
22 Aug '07
4 min read
Bharti Enterprises and Wal-Mart Stores Inc announced that they have signed an agreement to establish Bharti Wal-Mart Private Limited, a joint venture for wholesale cash-and-carry and back-end supply chain management operations in India, in line with Government of India guidelines. Under the agreement, Bharti and Wal-Mart will hold a 50:50 stake in Bharti Wal-Mart Private Limited.
Wholesale cash-and-carry operations provide small retailers and business owners a wide range of quality products at competitive wholesale prices that help them enhance their businesses and profitability.
The Bharti Wal-Mart business-to-business wholesale cash-and-carry joint venture will serve kirana stores, fruit and vegetable resellers, restaurants and other business owners. It also will serve other retailers such as Bharti Retail, which is setting up a chain of stores in India that are 100 percent owned and operated by Bharti.
The wholesale cash-and-carry venture will invest in setting up an efficient supply chain. This will link farmers and small manufacturers directly to retailers, thereby maximizing value for farmers and manufacturers on the one end and retailers, and in turn, consumers on the other.
The venture will support farmers and small manufacturers who have limited infrastructure and distribution strength, and the supply chain will enable minimum wastage, particularly of fresh foods and vegetables.
“We are delighted to partner with Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in India,” said Sunil Bharti Mittal, Chairman and Group CEO, Bharti Enterprises.
"Wal-Mart's global expertise in supply chain and logistics will bring enhanced efficiencies across the retail ecosystem. This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India. We are pleased to be a partner in developing this sector which is set to become a significant engine of India's economic growth.”
Mike Duke, Vice Chairman, Wal-Mart Stores Inc said, “We are delighted that, in Bharti, we have a well-respected partner who has a deep understanding of the local market."
"Through our wholesale cash-and-carry joint venture, we will help drive efficiencies across the supply chain and work towards the betterment of India's farmers, small manufacturers and retailers, in line with our global vision of saving people money so they can live better. We would also like to leverage our global scale to transform some of these suppliers into exporters with access to our global markets over time.”
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