In agreeing to create a joint venture dedicated to wholesale cash-and-carry and back-end supply chain management operations in India, Wal-Mart Stores and Bharti Enterprises are bringing modern retailing to the country. The wholesale business will provide an outlet to stock kirana stores, fruit and vegetable resellers, restaurants, other business owners, and Bharti Retail.
By sharing its global knowledge and technology in supply chain and logistics, Wal-Mart hopes to make Indian suppliers part of its global export market, while the venture also helps connect farmers, small manufacturers, and retailers with one another.
Indiathus regards the entrance of Wal-Mart as productive for the country, because it will introduce just-in-time inventory, retail information systems, cold chain infrastructure, GPS truck and trailer tracking, and fuel management systems. Bharti will run the operations at the wholesale warehouses, which will stand at 50,000–100,000 square feet and sell everything from perishables to grocery staples to clothing and consumer durables.
Furthermore, as one ofIndia’s leading business groups in telecom, agribusiness, insurance, and retail, Bharti Enterprises already participates in several joint ventures, which should be advantageous for its success with Wal-Mart inIndia.
1. What are the advantages and disadvantages for Wal-Mart in entering India?
“Bharti Enterprises and Wal-Mart Join Hands in Wholesale Cash-and-Carry to Serve Small Retailers, Manufacturers, and Farmers,” Wal-Mart Press Release, August 6, 2007.