The joint venture Bharti Wal-Mart Private Limited is set to open 10-15 wholesale cash-and-carry facilities which will employ approximately 5,000 people over the next seven years. The first facility is expected to take off from Punjab by the first quarter of 2009. The JV has already set up a distribution centre spread over 1,00,000 sq ft in Banur from where goods will be supplied to the nearest facility.
Being tight-lipped over the selection of the place for first cash and carry facility Raj Jain, managing director and CEO, Bharti Wal-mart Private Limited just said the company would commence its operations from the north only.
Talking about the Wal-Mart economics in India, Raj Jain said, ?Our aim is to provide best quality products at cheaper prices in India. Wholesale cash and carry operation will provide a wide range of products to small retailers and business owners. The JV will serve Kirana stores, fruit and vegetable resellers, restaurants. The venture will invest in setting up an efficient chain and will support farmers, small manufacturers who have limited infrastructure and distribution strength. We will also help our suppliers to get easy access to finance from banks. The supplier will get the certificate from Wal-Mart, which will help them to avail the loan. But we will not stand as a guarantee if a particular supplier fails to repay the loan?.
The typical facility will stand between 50,000 and 1,00,000 square ft and will sell wide range of fruits, vegetables, groceries, staples, stationery, clothing, consumer durables and other general merchandise items. The chain will enable minimum wastage, particularly food and fresh goods.
Speaking on some of the challenges on the way, Raj Jain said, ?Wholesale cash carry is new concept in India and there are various challenges like bringing new technology here. Besides soaring real estate prices is another hurdle especially in the north?. The JV is also mulling to come up with education centre to train people to fulfill the requirement of the retail business.