Wal-Mart snaps ties with Bharti Enterprises
In a big development, the Wal-Mart Stores Inc has snapped all business relations with its Indian partner, Bharti Enterprises and decided to operate separate business in the country. Bharti will also handle its retain operation independently.
Wal*Mart, which is the world’s biggest retailer, had sought the help of Bharti to carry out its India operation because of the restrictions prevalent at that time for foreign supermarket operators. The joint venture between Wal-Mart and Bharti was signed in 2007 and they started operation in 2008.
With India opening up its market to multi-brand retailers, the global supermarket leader is now confident of conducting its business independently and maximising the profits. Under the break-up terms, the Bentonville-based company will acquire Bharti’s 50 per cent stake in Bharti Wal-Mart Pvt. Ltd.
Currently, the Bharti Wal-Mart Pvt. Ltd. runs about 20 wholesale stores in India under the Best Price Modern Wholesale brand. Bharti Retail will continue its operations in 212 retail stores across the country.