Abstract

On November 27, 2006, Wal-Mart signed a MoU with Bharti for exploring the scope in India’s retail industry. This 50:50 joint venture would operate in areas in which government permits foreign direct investment in retail like cash-and-carry and logistics. Together they would set up hypermarkets, supermarkets and grocery stores. The Bharti-Wal-Mart group would not own any real estate and would just pay lease rentals as anchor tenants for the space which they would take for their stores. However, Wal-Mart may face competition from Reliance and also from Pantaloons Retail India Ltd who are trying to gain a strong foothold in the country’s retail sector. Apart from competition, Wal-Mart is also facing problems from political parties. According to them, Wal-Mart’s back door entry in India would adversely affect the unorganized retail sector in India.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Wal-Mart, Bharti, Reliance, Pantaloons Retail India Ld, WM Global Sourcing India, Tesco Plc, Carrefour SA, MoU, Joint venture, India, Retail industry, Cash-and-carry, Logistics, Franchise, Acquisitions, Hypermarkets, Supermarkets, Grocery stores, Discount stores, Neighborhood markets, Real estate, Lease rentals, Anchor tenants, Competitive pricing, Multi-brands, Licencees, Foreign direct investment, Reliance Fresh, Big Bazaar, Backdoor entry, Monopolize, Cheap labor, Competitor, Left parties