Bharti guns for August retail launch

The Bharti group has informed the Ministry of Commerce and Industry that it will begin operations in August-September this year, once its business and funding plans are finalised with Wal-Mart, the world's largest retail chain and back-end partners for its retail enterprise.

The letter, written last week, precedes the visit of Wal-Mart Vice-Chairman Michael Duke, who was in the capital today to meet government officials.

It comes in the backdrop of a letter written by Congress President Sonia Gandhi to Prime Minister Manmohan Singh suggesting the government set up a committee to study the impact of "transnational corporations" on small retailers.

Duke reportedly met Montek Singh Ahluwalia, deputy chairman, Planning Commission, Sharad Pawar, Union minister for food, agriculture and consumer affairs and Commerce Minister Kamal Nath. He was accompanied by Sunil Mittal and Bharti Enterprises' Joint Managing Director Rajan Mittal at all the meetings. The joint venture is expected to be signed in a few weeks.

The law currently allows 100 per cent foreign direct investment in wholesale retail operations. So far, only German major Metro AG is in this business with an outlet in Bangalore. Wal-Mart will be the second and will act as a major sourcing network for Bharti. Bharti informed the government that it was meeting potential customers to understand the size of the market, their requirements and pricing strategies.

Bharti's letter has also stressed the progress in recruitment and training of personnel for the retail project, saying that the retail sector would create huge direct employment opportunities, as well as result in entrepreneurial growth for small and medium businesses.

Bharti has also informed the government that it is working with its joint venture partner on various areas, which include market surveys, collection and analysis of data, evaluating potential suppliers and suitable land and building space.