Friday, June 05, 2009
Wal-Mart, the world’s largest retailer, has set its sights on the world’s largest capitalist market: India. Teaming with Bharti Enterprises, the parent company of India’s biggest mobile firm, Bharti Airtel, Wal-Mart has created the joint venture: Bharti Wal-Mart Private Limited for operations in India. On May 30, the joint venture opened its first wholesale distribution center in Amritsar, in the northern state of Punjab. The company, named Best Price Modern Wholesale, plans to establish another 15 locations throughout India and invest $100 million in the next two to four years.
Best Price will not be open to retail shoppers, but will serve as a one-stop shop that will meet the needs of restaurants, hotels, catering services, resellers, offices and kiranas (small, local shops). The store will offer an assortment of approximately 6,000 items. “Over 90 percent of the goods and services are being sourced locally, thereby helping keep costs to a minimum, adding to the growth of the local economy and creating job opportunities,” said Raj Jain, Chief Executive of Wal-Mart India. By entering the Indian wholesale market, Wal-Mart hopes to build up a successful partnership with the 15 million kiranas that make up nearly 95 percent of the country’s retail market.
Wal-Mart has been buying products from Indian suppliers for more than 20 years, primarily “home textiles” (towels, shower curtains, bath mats, etc.) and clothing (woven goods, knitwear and leather shoes).
-Ednar Segura
Bharti Wal-Mart First Store Kicks Off (The Hindu)
Wal-Mart Set to Make First Foray into India Tomorrow (by Penny MacRae, Agence France-Presse)
Kirana Will Still Rule (by Gaurav Sabnis, Indian Economy Blog)
Wal-Mart in India (Wal-Mart)
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