Thursday, June 18, 2009

Bharti-Walmart Pvt. Ltd. launched their first cash-and-carry store in Amritsar

(This entry was originally uploaded on May 2009.)

On May 30, 2009, Bharti Wal-Mart opened their first joint venture store in Amritsar, Punjab. The store was supposed to be inaugurated on May 26, 2009, but it was postponed as riot broke out in Punjab over the killing of a Dera leader in Austria.

In the launching ceremony of the first store, Rajan Bharti Mittal, Vice Chairman and Managing Director, Bharti Enterprises, said that the two companies will launch 15 more stores employing more than 5000 people in the next three years. The shops will sell about 6,000 products 90% of which will be locally sourced. Already, Bharti-Walmart Private Limited, signed up 30,000 retailers and 800 (in other reports it is 8000) local suppliers to buy good for their cash-and-carry stores titled “Best Price Modern Wholesale.” The store in Amritsar is built over 50,000 square feet area and is expected to provide 200 direct and 500 indirect jobs. In the next twelve months, Bharti-Walmart Pvt. Ltd. will further build new stores in Punjab, Haryana, Uttar Pradesh and Madhya Pradesh. The company already bought lands in those places.

Bharti-Walmart Pvt. Ltd. is a joint venture between famous American retail chain

Wal-Mart Stores Inc. and Bharti Enterprises, one of the top business conglomerates in India. The two companies are also looking forward to form a joint-venture for “multi-brand retailing” after they get permission from the government. India. Indian law does not allow retailers like Wal-Mart to sell directly to the people. However, they company can run wholesale operations and provide support to its retailers.

Mr. Rajan Bharti Mittal said that due to the inefficiency of the current supply chain, there is lot of wastage by the time the product reaches to the consumer and his company will reduce that wastage. In addition, commodity prices in these stores will 2%-25% cheaper.

Related articles:

The Wall Street Journal


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