Vipin Dewidi B-4

Amit Sharma B-10

Anubhuti Atri B-18
Vivek Sharma B-28
Jitin Wadhawani B-38
Neeti Jain B-55
 INTRODUCTION
Bharti Enterprises

It is India’s leading business conglomerate with interests in

telecom, agri-business and infrastructure projects, operating
primarily across India and in the Seychelles.

It was established in 1976 and it's primary industry is in the field
of telecommunications via its subsidiary companies Bharti Airtel
(mobile telecommunications) and Bharti Teletech (wired
telecommunication services and telephone handsets).

Bharti also has a joint venture with ‘Field Fresh Foods Pvt. Ltd’,
for the global distribution of fresh fruits and vegetables.

Its approximate market capitalization is US $ 26 billion.

Recently, the company has tied-up with Wal-Mart for opening a

chain of retail stores all over India.
 Wal-Mart
 Wal-Mart Stores, Inc. is not only the largest retailer in the world, it
now also ranks as the largest corporation in the world.

 Wal-Mart was founded in July 1962 and has about 6,400 stores,
including some 1,200 discount stores, 2,000 discount and grocery
stores and 565 warehouse stores.

 Its Sales Revenue for the fiscal year ending January 31, 2006 was
US$ 316 billion.
 The Joint Venture
 On November 27, 2006, Wal-Mart Stores Inc. and Bharti
Enterprises Ltd. signed a Memorandum of Understanding
(MoU) to explore business opportunities in the Indian retail
industry. This joint venture marked the entry of Wal-Mart into
the Indian retailing industry.
 Bharti's JV with Wal-Mart for cash-and-carry (wholesale) will
be a 50:50 venture with a condition that if any strategic or
financial investor were to be brought in then both partners will
dilute stake equally.
 Bharti Enterprises plans to invest up to US$ 2.5 billion and
Wal-Mart Stores Inc. hasn't said how much it will invest in the
proposed venture.
 The front-end operations will be fully owned
and operated by Bharti while the back-end
supply chain management including logistics
and retail chain management will be provided
by Wal-Mart.
 First store to be opened on 15th of August
2007.
 Bharti-Wal Mart to have Hypermarts and
Neighbourhood stores.
 Wal-mart to get 3% royalty for their brand
name.
 ADVANTAGES
•World class stores with good customer service

•Everyday Low Prices (hopefully)

•Quality assortment of merchandise (Not that Walmart has the best

quality in US but they must be good for current Indian retail
standards)

•More jobs

•More related jobs across the supply chain --- Really an

understatement. Imagine all the producers and their suppliers and so
on.
 Inflow of massive capital.

 Increased government revenue.

 Development of infrastructure.

 Elimination of intermediaries.

 Business innovation.
 DISADVANTAGES OF THE MERGER

 Negation of the kirana stores.

 Walmart’s poor record :

- labour laws
- Union busting
- Exploiting small
producers.
 CONTD.
 Increased monopoly after big players do come in booming
indian retail market.

 The size of walmart is such big that it could easily flip around
the consumption pattern of india .
 Viability Of The Joint
Venture
 The punch line of Wal-Mart's is always low prices this
strategy will help them tackle the low price retailers for a
long term sustenance
 Wal-Mart is known for its Supply Chain Management
which results in less wastage and low costs.
 Wal-Mart would revolutionize Indian retail with
introduction of advanced technology and wider range of
products .
 Since Bharti is already aware of the Indian market. It will
save Wal-Mart a lot of time and energy to overcome the
resistance at early stages.
 Conclusion

 Wal-Mart will not have a huge impact on Indian

retail. It may take a few years before we see that
the kirana stores totally wiped out.
 The retail outlet might have to provide home
delivery services as we are used to home-delivery in
most cases because when we buy in bulk we do not
have our own conveyance to transport it.
 Again many of these customers are used to buying
on credit and they have a good interpersonal
relationship with the kirana stores which wal mart is
known for.