Partly Cloudy
1°CThu :Sunny. High: 6 Low: -1

Retail plans with Bharti “not tenable”: WalMart India

Retail plans with Bharti "not tenable": WalMart India

NUSA DUA, Indonesia: WalMart Stores Inc’s retail plans with India partner Bharti Enterprises are “not tenable” and both sides are looking for the best way to move forward, an executive with the US retailer told Reuters.

WalMart was expected to make a decision on its Indian retail plans later this month and Bharti will accordingly decide if those plans match its overall retail ambitions.

“We created a franchise in retail with Bharti in the hopes that there could be a potential freeing up (of foreign direct investment) that would allow it to potentially be the base of the business. But frankly, the FDI has passed,” said WalMart Asia Chief Executive Scott Price on the sidelines of the APEC conference in Bali, Indonesia

“That means the existing franchise to Bharti is not tenable as the base. What we are talking about with Bharti is what we do with that business.”

WalMart has an equal joint venture with Bharti under which it runs its Best Price Modern Wholesale Stores in India and the U.S. retailer last year had called Bharti its “natural partner” to open its retail stores in the country.

In July, Reuters reported Bharti was looking to exit its joint venture with WalMart.

India permitted foreign retailers to own 51 percent of their Indian operations in September 2012, but ambiguity around rules governing the policy has ensured no foreign retailer has so far applied to enter the country.

“I don’t see how any foreign retailer can comply and quite honestly no domestic retailer is complying either,” Price said.

Despite the uncertainty over the retail business, Price said that the US retailer was not planning on leaving India and was actually hoping to expand in the wholesale business.

 

Top Stories

Saina_Nehwal_SwissOpen_AP

Saina beats Chinese adversary Shixian Wang in Superseries Finals

December-18-2014
Heading Indian lady shuttler Saina Nehwal beat ruling Asian Games champion Shixian Wang of China 21-17, 21-18 to win the first match
MTE1ODA0OTcxOTg4MDU5NjYx

Amitabh Bachchan becomes the king of Twitter

December-18-2014
In an examination report of the most famous Bollywood stars on Twitter, Big B with 12 million adherents on Twitter beat the
Sensex on budget day

India Sensex Ends Five-Day Decline as Asian Shares Rally on Fed

December-18-2014
Indian stocks climbed the most in six weeks, with the benchmark list stopping a five-day slide, as the rupee reinforced and worldwide
PM_Modi_Rajya_Sabha_PTI_650

PM Narendra Modi in Rajya Sabha Today, But BJP Adamant He Will Not Speak on Conversions

December-18-2014
New Delhi : Head administrator Narendra Modi will be in the Rajya Sabha today, however the decision BJP has concluded that it
IndiaTvec82b0_Abdul-Hamid

Bangladesh President to touch base in India on six-day visit today

December-18-2014
New Delhi: In a first-ever visit by a stately Head of Bangladesh, its President Abdul Hamid will touch base here on Thursday
tata-steel_660_121614054109

Tata Steel Close to Reopening its Top Iron Ore Mine

December-17-2014
New Delhi: Tata Steel may be permitted to resume creation from its greatest iron mineral mine in the not so distant future,