There are an estimated 5,000 suppliers together for Bharti Retail's EasyDay and the cash and carry operation, Best Price Modern Wholesale. All of this year, though, there's been no expansion in the cash and carry business run jointly by Bharti and Walmart, which sells products only to shops and offices.
Now that Walmart has decided to buy out Bharti's 50 per cent stake in the venture and run the cash and carry business independently, its interim chief executive for the India market, Ramnik Narsey, has written to suppliers to explain the new situation.
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"We recognise you may have many questions as a result of this announcement. However, as you can appreciate, this is a complex agreement and is likely to take time to finalise and execute," Narsey wrote in a letter, according to a source. "The company's merchandising team would reach out to discuss the announcement and address any questions over the next few days," he assured the suppliers.
The Bentonville-based chain is believed to have said the support of partners and suppliers meant much to the company. More so in the festive season, according to Narsey.
Walmart also conveyed to suppliers its confidence in the India market, in spite of the split, six years after announcing the tie-up. "India is one of the world's fastest growing economies, offering significant business opportunities. Both parties are committed to the continued success of their respective formats."
The communication to the suppliers went on to explain that after regulatory approvals, the two companies would wind up their franchise arrangement in the retail business.