News: 'Wal-Mart deal worth billion dollars'

(IBN 8/11/2006) New Delhi - Bharti Enterprises has signed an agreement with world's largest retailer Wal-Mart for a joint foray into India's retail space. The companies have inked an MOU and operations expected to kick off mid August.

Sunil B Mittal, Bharti Airtel's chief executive officer, declined to divulge the financial details of the deal, but said it would be a huge investment involving hundreds of stores in India.

This is going to be a very comprehensive joint venture and the investments will be much larger. I can’t put a number to it, but given the size of India, it’ll be fair to assume that we’re talking in billions of dollars,” he said.

Mittal was also asked if he has the blueprint been decided and if it’s going to be one single joint venture or more than one company, more than one joint ventures.

Since it’s a comprehensive arrangement, it’s got to be in the areas where the Government allows FDI. It’s got be a major joint venture, which is cash and carry. And Walmart does a very large portion of cash and carry. That’s one area where TESCO is not there. Logistics, the area of procurement, the area of linking up with producers around the country, so that joint venture will do the entire development in that area.

The front end where the Government has still restricted FDI, it’ll be a 100 per cent owned Bharti entity,” he said.