Finer print of Bharti, Wal-Mart JV

Bharti's joint venture with Wal-Mart for cash-and-carry will be 50:50 one, with a condition that if any startegic or financial investor were to be brought in, then both partners will dilute stake equally.

The present policy restricts FDI in retail to single-brand ventures, with a cap of 51%. However, 100% FDI is permitted in wholesale cash-and-carry, where one can sell only to retailers and distributors, and not to the customers. besides, 100% FDI is also allowed under the automatic route inwarehousing services and refrigeration of agricultural products. While Bharti retail will enter into a franchise agreement with Wal-Mart for front-end retail, the two companies are forming a joint venture for the sourcing and cash-and-carry business. The first retail store under franchise may be opened on August 15 next year.

Bharti required the technology and the expertsie in logistics, supply chain management and cold chains and also needed to link up with the suppliers and producer communities and the tie-up with Wal-Mart would help towrards this.