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Vipin Dewidi B-4 Amit Sharma B-10 Anubhuti Atri B-18 Vivek Sharma B-28 Jitin Wadhawani B-38 Neeti Jain B-55
Vipin Dewidi B-4 Amit Sharma B-10 Anubhuti Atri B-18 Vivek Sharma B-28 Jitin Wadhawani B-38 Neeti Jain B-55
It was established in 1976 and it's primary industry is in the field
of telecommunications via its subsidiary companies Bharti Airtel
(mobile telecommunications) and Bharti Teletech (wired
telecommunication services and telephone handsets).
Bharti also has a joint venture with ‘Field Fresh Foods Pvt. Ltd’,
for the global distribution of fresh fruits and vegetables.
Wal-Mart was founded in July 1962 and has about 6,400 stores,
including some 1,200 discount stores, 2,000 discount and grocery
stores and 565 warehouse stores.
Its Sales Revenue for the fiscal year ending January 31, 2006 was
US$ 316 billion.
The Joint Venture
On November 27, 2006, Wal-Mart Stores Inc. and Bharti
Enterprises Ltd. signed a Memorandum of Understanding
(MoU) to explore business opportunities in the Indian retail
industry. This joint venture marked the entry of Wal-Mart into
the Indian retailing industry.
Bharti's JV with Wal-Mart for cash-and-carry (wholesale) will
be a 50:50 venture with a condition that if any strategic or
financial investor were to be brought in then both partners will
dilute stake equally.
Bharti Enterprises plans to invest up to US$ 2.5 billion and
Wal-Mart Stores Inc. hasn't said how much it will invest in the
proposed venture.
The front-end operations will be fully owned
and operated by Bharti while the back-end
supply chain management including logistics
and retail chain management will be provided
by Wal-Mart.
First store to be opened on 15th of August
2007.
Bharti-Wal Mart to have Hypermarts and
Neighbourhood stores.
Wal-mart to get 3% royalty for their brand
name.
ADVANTAGES
•World class stores with good customer service
•More jobs
Development of infrastructure.
Elimination of intermediaries.
Business innovation.
DISADVANTAGES OF THE MERGER
The size of walmart is such big that it could easily flip around
the consumption pattern of india .
Viability Of The Joint
Venture
The punch line of Wal-Mart's is always low prices this
strategy will help them tackle the low price retailers for a
long term sustenance
Wal-Mart is known for its Supply Chain Management
which results in less wastage and low costs.
Wal-Mart would revolutionize Indian retail with
introduction of advanced technology and wider range of
products .
Since Bharti is already aware of the Indian market. It will
save Wal-Mart a lot of time and energy to overcome the
resistance at early stages.
Conclusion