Wal-Mart Stores, Inc. (NYSE:WMT) said it is planning to acquire its partner in India in the business of wholesale store. It will be embarasing for world retailer to operate in Asia.
The venture will be acquired by Wal-Mart without revealing the actual amount of deal. In this wholesale venture Bharti Enterprises Pvt.’s has stake.
This agreement will give 20 stores to Wal-mart but it now it needs a partner to set up these stores. Although south Asian nation allow forein stores to operate fully in their countries but they require local partner joint venture in the start.
An analyst at brokerage ICICI Direct in Mumbai, Dhvani Bavishi said that without local partner in India will slow down the sales and business of Wal-mart. He said that currently. Wal-mart is focusing on wholesale business and will start its retail business after the election in India next year. The current joint venture work cash-and-carry stores that allow the entrance into store only to registered members. Both ventures have 50 percent share according to their website.
As Wal-mart loses some top executives in India over the last year and now according to some news Jain will be the head of Bharti Retail.
Minister for commerce and industry Anand Sharma said that Wal-Mart breach rules and established foreign investment in the retail industry in India and for this reason an Indian government agency is considering these allegations. The Wal-Mart Stores, Inc. (NYSE:WMT) is planning to increase its wholesale cash and carry business in India. According to deal, Bharti will buy the required convertible debentures held U.S retailer in Cedar Support Services.
In September Nation changes the rule to allow foreign retailers to open their store in the country and for this reason government also relaxing the rules about foreign retailers. But up till now companies do not show interest to invest in India due to restricted outflow of cash from India.
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