Rising realty prices a concern for retail: Mittal

New Delhi, Jul 30 | Updated: Jul 31 2007, 04:16am hrs
Bharti Enterprises, which has announced join ventures with US giant Wal-Mart for its retail foray, said rising real estate prices could hamper the growth of the organised retail industry in the country.

"The rising real estate prices are a matter of concern for the retail sector," Bharti Enterprises chairman and CEO Sunil Bharti Mittal told reporters on the sidelines of a CII function here. Bharti Enterprises has also floated a real estate outfit of its own which would largely meet the requirements of its retail business.

The Bharti Group, which has announced joint ventures with Wal-Mart for bringing the US giant to India through a franchise and cash and carry model (wholesale), is close to signing a formal agreement for the deal. "Our first store will open next year and the work on hiring and training people has started," Mittal said.

The Bharti had announced that it would have two ventures with Wal-Mart one for the franchise arrangement and the other for cash and carry business. While Bharti will have a majority stake in the franchise joint venture, the US giant would contribute major equity in the back-end business.

PTI