Wal-Mart reveals Indian wholesale plans

The world's largest retailer, yesterday gave a vote of confidence in the booming Indian economy with plans to introduce a network of cash-and-carry superstores across the country.

The venture, with Indian conglomerate Bharti, will see 10 to
15 wholesale stores in the next seven years beginning in 2008. The companies
will each have an equal stake in the venture, which will be branded Bharti
Wal-Mart and will employ at least 6,000 people.

No foreign direct investment is allowed in the retail
sector, except for single-brand stores such as Nike. By entering the wholesale
market, Wal-Mart will gain a foothold ahead of its many competitors should the
government allow foreign retailers to expand. Bharti, which owns India's
largest mobile phone network and has a farm business, has the reach and
distribution but not the technical know-how to run a large retail business.

"I think by improving the cold-chain technology and
getting the logistics right, Wal-Mart could help India become an agribusiness
exporter," Mr Singhal said.