Bharti, Wal-Mart front-end JV 'if allowed'

On the heels of announcing a joint venture for wholesale cash-and-carry business with the world's biggest retailer Wal-Mart, Sunil Bharti Mittal, chairman, Bharti Enterprises today said the two companies would form a 50:50 partnership for front-end retail 'if allowed' by the government.

"The issue is FDI in retail is not allowed (for multi brand). In the event FDI is opened up to 100%, there will be a 50:50 joint venture for front-end retail," Mittal told reporters on the sidelines of the CII Marketing Summit here.

He said the partnership would depend largely on the government policy. "If the government allows only 26% FDI, Wal-Mart will have only 26%."

Asked if Wal-Mart would choose to go alone in case the FDI norms were completely relaxed, he said Bharti was a partner of choice for the US-based retailer. "Wal-Mart failed in Korea and Germany, while they are struggling in Japan and relatively doing well in China. They do recognise the need for a local partner," he added.

Bharti and Wal-Mart had announced a 50:50 joint venture for wholesale cash-and-carry business on August 6. The first wholesale store is expected to be opened by the end of 2008, Wal-Mart India President (Operations) Raj Jain had said: "Over the next seven years, we are planning to open 10-15 wholesale cash-and-carry facilities throughout the country."