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| Version 5 | Version 6 |
|---|---|
| Wal-Mart to enter Indian market | Wal-Mart to enter Indian market |
| (about 4 hours later) | |
| US supermarket giant Wal-Mart is to enter the Indian retail market after announcing a joint agreement with India's Bharti Enterprises. | US supermarket giant Wal-Mart is to enter the Indian retail market after announcing a joint agreement with India's Bharti Enterprises. |
| The two companies said they had signed a deal to "jointly explore business opportunities" in India. | The two companies said they had signed a deal to "jointly explore business opportunities" in India. |
| Bharti chairman Sunil Mittal said the two companies intended to open "several hundred" stores across India under the Wal-Mart brand name. | Bharti chairman Sunil Mittal said the two companies intended to open "several hundred" stores across India under the Wal-Mart brand name. |
| Wal-Mart's deal comes after Britain's Tesco ended talks with Bharti. | Wal-Mart's deal comes after Britain's Tesco ended talks with Bharti. |
| Tesco had hoped to reach a similar deal with Bharti, but its negotiations ended without agreement last week. | Tesco had hoped to reach a similar deal with Bharti, but its negotiations ended without agreement last week. |
| Bharti had also spoken with France's Carrefour and Germany's Metro, according to reports. | Bharti had also spoken with France's Carrefour and Germany's Metro, according to reports. |
| Fast-growing market | Fast-growing market |
| The Bharti joint venture is a huge opportunity for Wal-Mart to gain a foothold in a market analysts expect will double in value to $637bn (£330bn) by 2015. | The Bharti joint venture is a huge opportunity for Wal-Mart to gain a foothold in a market analysts expect will double in value to $637bn (£330bn) by 2015. |
| "Wal-Mart was keen to get into India. I think they have chosen the right partner," said Mr Mittal. | "Wal-Mart was keen to get into India. I think they have chosen the right partner," said Mr Mittal. |
| Analysts expect the big players to account for a large share of growth in retailing that is bound to come with India's rising middle class Andrew Walker, BBC economics correspondent | |
| "It is going to be a large investment, we are going to be a big player in this market." | "It is going to be a large investment, we are going to be a big player in this market." |
| Large overseas retailers such as Tesco and Wal-Mart are currently barred at the retail level in India, but not in the wholesale market. | Large overseas retailers such as Tesco and Wal-Mart are currently barred at the retail level in India, but not in the wholesale market. |
| Mr Mittal said the deal with Wal-Mart complied with existing government rules, suggesting Wal-Mart will handle the supply side of the operation, while Bharti will run the stores. | Mr Mittal said the deal with Wal-Mart complied with existing government rules, suggesting Wal-Mart will handle the supply side of the operation, while Bharti will run the stores. |
| Closed reaction | |
| Bharti is a well-known brand in India, offering mobile phone services to more than 24 million users. | Bharti is a well-known brand in India, offering mobile phone services to more than 24 million users. |
| The company is keen to expand its business reach and tap further into India's rapid economic expansion, growing middle class and rising consumer demand, analysts said. | |
| India's economy is growing rapidly | |
| Bharti's agreement with Wal-Mart is likely to run into opposition from India's small shopkeepers, who currently account for the majority of retail sales, said BBC World Service economics correspondent Andrew Walker. | |
| "They are often family businesses and they are worried that lowering the barriers to Wal-Mart and others might cost them dearly," he said. | |
| "Certainly analysts expect the big players to account for a large share of growth in retailing that is bound to come with India's rising middle class." |