It looks like they are... WSJ is reporting that they will partner with Bharti a cellphone giant who own BPL, idea and airtel...
About three months ago, I had a debate with a friend at IIMA that walmart will enter India with a partnership model. At that time i had considered Bharti as a contender for the partner i guess i was right. The other option i thought walmart could enter India with a franchisee model.
The mode of entry was also the way i had thought they would do ...
do all the back end stuff and let the partner do the front end ...
The reason is India's FDI policy, it allows only FDI in retail that sells it's own brand such as Nokia, Motorola, Samsung, Sony. But policy does not allow FDI in retail where it's a multi brand store.
official reason for such as policy
it'll jeopardize the interest of small vendors...
But rumors are that it's lobbying by Biyani and the retail group who wants to get as "tagda" as possible before the inevitable happens.
So inevitable is about to happen ...
Reliance v/s Bharti-Walmart v/s Biyani v/s Star bazaar (Tata)
I'm surprised that Tata is not doing anything in this area .. who know what's cooking there ?
link to article on WSJ
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