Wal-Mart Steps into The Final Frontier

The world's largest retailer is finally here — it’s the most admired, the most respected, the most feared, the most loved and the most hated company in Corporate America. And if all goes well, bulge-bracket retailer Wal-Mart will set up its first shop in India on August 15 — through a franchisee agreement with Sunil Mittal's Bharti Enterprises. It’s a name that sends shivers down FMCG spines, a company known for squeezing consumer goods companies around the world down to the last cent. For consumers, it's good news — Wal-Mart drives the best bargains and passes on the benefits to consumers. Wal-Mart has spent four years on top as America's largest corporation on top of the Fortune 500 list. It is unlikely that the Swadeshi brigade will be amused by Sunil Mittal's move. After all, the whole idea behind the numerous restrictions on FDI in the retail sector was to keep the $316-billion behemoth Wal-Mart at bay, even though its main USP is value-for-money for the average consumer. Mr Mittal will own the company running the front-end retail operations, while both Wal-Mart and Bharti will invest jointly in another company, which will engage in cash-and-carry, logistics, supply chain and sourcing — areas in which FDI up to 100% is allowed. “Bharti, with its deep knowledge of India's fast-growing consumer market and Wal-Mart, with its extensive global retail experience, share the same commitment to building relationships with producers in order to provide great quality at reasonable prices to consumers everyday,” said a statement from Bharti.

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