SHauKeeN GaBRu
Chardi Kala
<table border="0" cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td align="left" valign="top"><a href="http://economictimes.indiatimes.com/articleshow/609706.cms"><arttitle>Wal-Mart says 'Namaste India', with Bharti</arttitle>
<artag>TIMES NEWS NETWORK</artag>
[ TUESDAY, NOVEMBER 28, 2006 02:14:33 AM]</td> </tr><script language="javascript">var msid=609706 var mstatus = false; var sUser, cookiestring; function getCookievalue(strcookie) { var ipos = cookiestring.indexOf(strcookie); var ipos2 = cookiestring.indexOf(';',ipos); if (ipos != -1) { if (ipos2 == -1) ipos2 = cookiestring.length; return unescape(cookiestring.substring((ipos+strcookie.length+1),ipos2));} } try { document.domain='indiatimes.com'; cookiestring= document.cookie; cookiestring = cookiestring.toLowerCase(); sUser = getCookievalue('commlogu'); sUserLength = sUser.length; if (getCookievalue('cmssso') =='true') {mstatus=true;} } catch(er) {cookiestring=' '; sUserLength=0;} try { if ((sUserLength > 0) && (mstatus == true) ) {} else { /*document.write('<tr><td valign="top" align="center" bgcolor="#f9eadd">' + 'Surf \'' + 'N' + '\' Earn -' + 'Sign in
now
' + '</td></tr>'); */ } } catch(er) {cookiestring=' '; sUserLength=0;}</script><tr> <td align="center" valign="top">
</td> </tr> <tr> <td align="center" valign="top"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tbody><tr> <td name="bellyad" id="bellyad" class="text" align="center"> <!-- google_ad_region_start=article --> <script language="javascript">doweshowbellyad=0; </script>
NEW DELHI: The world's largest retailer is finally here — it’s the most admired, the most respected, the most feared, the most loved and the most hated company in Corporate America. And if all goes well, bulge-bracket retailer Wal-Mart will set up its first shop in India on Independence Day — August 15 — through a franchisee agreement with Sunil Mittal's Bharti Enterprises.
It’s a name that sends shivers down FMCG spines, a company known for squeezing consumer goods companies around the world down to the last cent. For consumers, it's good news — Wal-Mart drives the best bargains and passes on the benefits to consumers. And after four years on top, Wal-Mart made way for the oil giant Exxon this year as America's largest corporation on top of the Fortune 500 list.
The patriotic Mr Mittal may have chosen Independence Day to start his ambitious venture, but it is unlikely that the Swadeshi brigade will be amused. After all, the whole idea behind the numerous restrictions on FDI in the retail sector was to keep the $316-billion behemoth Wal-Mart at bay, even though its main USP is value-for-money for the average consumer.
According to the agreement, Mr Mittal will own the company running the front-end retail operations, while both Wal-Mart and Bharti will invest jointly in another company, which will engage in cash-and-carry, logistics, supply chain and sourcing — areas in which FDI up to 100% is allowed.
“Bharti, with its deep knowledge of India's fast-growing consumer market and Wal-Mart, with its extensive global retail experience, share the same commitment to building relationships with producers in order to provide great quality at reasonable prices to consumers everyday,” said a statement from Bharti.
Though it was always clear that Wal-Mart could set up shop in India through the franchisee route, very few thought it would come in without any FDI. As a matter of global policy, the retail major likes to control its ventures through equity participation and that's the reason why it unabashedly lobbied with successive Indian governments to allow at least some amount of FDI in the sector.
A section of the Indian industry has reacted with surprise to Mr Mittal's formal announcement of the Wal-Mart-Bharti alliance, though ET has been reporting of the developments over the past few weeks.
For Sunil Mittal, “it's a joint venture of equals, not an equal-equity joint venture”. Asked how it felt to be the entry-point for the world's largest retailer, Mr Mittal shot back: "I would rather look at it as Wal-Mart becoming our partner for our retail venture.” However, Wal-Mart was more guarded in its response.
“It's too early for us to comment further as we have just begun our relationship with Bharti, but we are pleased to be in discussions with such a well-respected company that truly understands India's fast-growing retail market,” a statement issued by Wal-Mart said.
It will be interesting to watch the forthcoming struggle for wallet share between Mukesh Ambani's Reliance Retail and the Bharti-Wal-Mart partnership. This is what Mukesh Ambani, who's being dubbed as India's answer to Sam Walton (the founder of Wal-Mart), said on hearing the news: “There's place for 6-7 large players in the retail sector. Sunil is a dear friend and we will work together to make Indian retail strong.”
</td></tr></tbody></table></td></tr></tbody></table>
<artag>TIMES NEWS NETWORK</artag>
</td> </tr> <tr> <td align="center" valign="top"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tbody><tr> <td name="bellyad" id="bellyad" class="text" align="center"> <!-- google_ad_region_start=article --> <script language="javascript">doweshowbellyad=0; </script>
<table align="center" border="1" cellpadding="2" cellspacing="0" width="63%"> <colgroup> <col width="100%"> </colgroup> <tbody><tr valign="top"> <td colspan="1" rowspan="1" style="background-color: white;" width="100%">
</td> </tr> </tbody></table>
</td> </tr> </tbody></table>
NEW DELHI: The world's largest retailer is finally here — it’s the most admired, the most respected, the most feared, the most loved and the most hated company in Corporate America. And if all goes well, bulge-bracket retailer Wal-Mart will set up its first shop in India on Independence Day — August 15 — through a franchisee agreement with Sunil Mittal's Bharti Enterprises.
It’s a name that sends shivers down FMCG spines, a company known for squeezing consumer goods companies around the world down to the last cent. For consumers, it's good news — Wal-Mart drives the best bargains and passes on the benefits to consumers. And after four years on top, Wal-Mart made way for the oil giant Exxon this year as America's largest corporation on top of the Fortune 500 list.
The patriotic Mr Mittal may have chosen Independence Day to start his ambitious venture, but it is unlikely that the Swadeshi brigade will be amused. After all, the whole idea behind the numerous restrictions on FDI in the retail sector was to keep the $316-billion behemoth Wal-Mart at bay, even though its main USP is value-for-money for the average consumer.
According to the agreement, Mr Mittal will own the company running the front-end retail operations, while both Wal-Mart and Bharti will invest jointly in another company, which will engage in cash-and-carry, logistics, supply chain and sourcing — areas in which FDI up to 100% is allowed.
“Bharti, with its deep knowledge of India's fast-growing consumer market and Wal-Mart, with its extensive global retail experience, share the same commitment to building relationships with producers in order to provide great quality at reasonable prices to consumers everyday,” said a statement from Bharti.
Though it was always clear that Wal-Mart could set up shop in India through the franchisee route, very few thought it would come in without any FDI. As a matter of global policy, the retail major likes to control its ventures through equity participation and that's the reason why it unabashedly lobbied with successive Indian governments to allow at least some amount of FDI in the sector.
A section of the Indian industry has reacted with surprise to Mr Mittal's formal announcement of the Wal-Mart-Bharti alliance, though ET has been reporting of the developments over the past few weeks.
For Sunil Mittal, “it's a joint venture of equals, not an equal-equity joint venture”. Asked how it felt to be the entry-point for the world's largest retailer, Mr Mittal shot back: "I would rather look at it as Wal-Mart becoming our partner for our retail venture.” However, Wal-Mart was more guarded in its response.
“It's too early for us to comment further as we have just begun our relationship with Bharti, but we are pleased to be in discussions with such a well-respected company that truly understands India's fast-growing retail market,” a statement issued by Wal-Mart said.
It will be interesting to watch the forthcoming struggle for wallet share between Mukesh Ambani's Reliance Retail and the Bharti-Wal-Mart partnership. This is what Mukesh Ambani, who's being dubbed as India's answer to Sam Walton (the founder of Wal-Mart), said on hearing the news: “There's place for 6-7 large players in the retail sector. Sunil is a dear friend and we will work together to make Indian retail strong.”
</td></tr></tbody></table></td></tr></tbody></table>
