Wal-Mart establishes joint venture in India

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Wal-Mart hopes to become a major force in India’s grocery sector.

Wal-Mart has signed a joint-venture agreement with Indian wholesaler Bharti Enterprises to operate a wholesale cash and carry business to serve retailers, manufacturers and farmers in India. As part of the agreement, Wal-Mart and Bharti Enterprises will each own a 50% stake in the new company, Bharti Wal-Mart Private Ltd.

The joint venture will serve stores, including Bharti's retail decision, which is setting up a chain of stores in India. It will also serve fruit and vegetable resellers, restaurants and other business owners. The first cash and carry outlet is scheduled to open by the end of 2008, with further plans to open 10 to 15 outlets over the next seven years.

The venture will also invest in setting up an efficient supply chain that will link farmers and small manufacturers directly to retailers. "Wal-Mart's global expertise in supply chain and logistics will bring enhanced efficiencies across the retail ecosystem," said Sunil Bharti Mittal, chairman and CEO, Bharti Enterprises.

"This venture promises to bring great value to millions of farmers, artisans, small manufacturers and retailers across India. We are pleased to be a partner in developing this sector which is set to become a significant engine of India's economic growth," he added.

Mike Duke, vice chairman, Wal-Mart, added: "We have a well-respected partner who has a deep understanding of the local market. Through our joint venture, we will help drive efficiencies across the supply chain and work towards the betterment of India's farmers, small manufacturers and retailers, in line with our global vision of saving people money so they can live better."

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