WAL-MART to trade under three different banners in India
WAL-MART to trade under three different banners in India
Wal-Mart plans to trade under three different banners when it opens its first stores in India. In an interview with The Economic Times, Bharti Group chairman Sunil Mittal said, "It's only logical that we call the cash and carry format Bharti-Wal-Mart as it's a joint venture between the two companies. The Bharti-owned front-end retail stores and the franchisee-owned neighbourhood stores will carry two different names. It makes sense to operate under three different names but nothing has been finalised as yet."
Mr Mittal also noted that it is highly unlikely Bharti will open its first store by September 2007. The company is in the process of shortlisting possible sites and now expects its first store to open in early 2008. Mr Mittal believes that private label will also be important in its joint venture with Wal-Mart. "All retailers will have to venture into private labels,” he said. “The brand name of the products will be completely different - it will be something that will appeal to the public. Neither Bharti nor Wal-Mart is stuck up about using its brand.”
Mr Mittal added that an agreement with Wal-Mart for the cash and carry joint venture is “very close to being finalised” and Bharti’s joint managing director, Rajan Mittal, was in London for talks with Wal-Mart last week. Mr Mittal believes there is huge potential for retailing in the fragmented Indian retail market. "Even six to seven years down the line, no one player will be able to dominate the Indian retail market." He added that Wal-Mart is “a company that has helped revolutionise retail. Wal-Mart signifies speed, scale and size."