News: Bharti says retail plan in 3-4 months
(RTR 18/04/2006) New Delhi - Bharti Enterprises will start insurance operations in June and firm up plans for retail within three or four months, chairman Sunil Mittal said on Tuesday.
Last year, Bharti set up a 74:26 life insurance joint venture with Axa Asia Pacific Holdings Ltd., a unit of France's Axa SA. Bharti and Axa will jointly invest about $115 million over four years in Bharti Axa Life Insurance Co. Ltd.
"The insurance JV... we hope to start it by June," Mittal told reporters on the sidelines of a news conference. Mittal also said Bharti's retail plans would be finalized soon, but declined to name a potential partner.
Local media reports have said Bharti is in talks with global retailers including Wal-Mart Stores and Tesco Plc for a venture in food and grocery retail.
India's branded retail market is estimated at about $6 billion. This forms only 3 percent of the overall market, of which more than 65 percent is in food and grocery.
Bharti Enterprises -- which partly owns India's top mobile services firm Bharti Tele-Ventures -- has a presence in fresh produce with Fieldfresh Foods, a joint venture with the Rothschild group.
Tesco has a support centre and non-food sourcing operations based in Bangalore.
Media reports have speculated that a joint venture with Bharti would entail an initial investment of about $100 million, rising to about $1 billion.
The government in January allowed single-brand foreign firms to own 51 percent of retail joint ventures. But multiple-brand firms like Wal-Mart and Tesco are still barred at the retail level, though they can set up wholesale operations. Meanwhile, Reliance Industries Ltd. is investing $750 million in retail foray.
Analysts said retail sector investment norms could be eased in a year or two.
Last year, Bharti set up a 74:26 life insurance joint venture with Axa Asia Pacific Holdings Ltd., a unit of France's Axa SA. Bharti and Axa will jointly invest about $115 million over four years in Bharti Axa Life Insurance Co. Ltd.
"The insurance JV... we hope to start it by June," Mittal told reporters on the sidelines of a news conference. Mittal also said Bharti's retail plans would be finalized soon, but declined to name a potential partner.
Local media reports have said Bharti is in talks with global retailers including Wal-Mart Stores and Tesco Plc for a venture in food and grocery retail.
India's branded retail market is estimated at about $6 billion. This forms only 3 percent of the overall market, of which more than 65 percent is in food and grocery.
Bharti Enterprises -- which partly owns India's top mobile services firm Bharti Tele-Ventures -- has a presence in fresh produce with Fieldfresh Foods, a joint venture with the Rothschild group.
Tesco has a support centre and non-food sourcing operations based in Bangalore.
Media reports have speculated that a joint venture with Bharti would entail an initial investment of about $100 million, rising to about $1 billion.
The government in January allowed single-brand foreign firms to own 51 percent of retail joint ventures. But multiple-brand firms like Wal-Mart and Tesco are still barred at the retail level, though they can set up wholesale operations. Meanwhile, Reliance Industries Ltd. is investing $750 million in retail foray.
Analysts said retail sector investment norms could be eased in a year or two.
posted by InCar Group Press Room at 14:56
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