The future of Indian cash and carry chain Bharti Walmart will be decided this month, according to The Wall Street Journal.
Bharti Enterprises chairman Sunil Mittal confirmed the Indian company was reviewing its relationship with US retail giant Walmart, following rumours the multinational conglomerate was looking to downsize its operations in the sub continent.
“Within October, I would say, Walmart should have taken a decision of their vision for India, and Bharti could have taken a decision whether it matches our aspirations,” Mittal told the Journal.
Bharti and Walmart currently operate 19 Best Price Modern Wholesale stores around India, under a 50:50 joint venture which began in 2007. Walmart also manages Bharti’s retail chain Easy Day.
In September 2012 the US firm announced its intentions to open its first independent outlet in India by 2014, following efforts to open the market up to direct foreign investment.
However, these plans were put on hold in July this year, when the retailer said it was unlikely to apply for its first store licence before 2015.
Despite delaying its expansion plans, Walmart insists it remains committed to the Indian market.
“We’ve made no announcements and don’t comment on rumours or speculation,” a Walmart spokesman told the Journal.
“Walmart is optimistic about growing our Best Price Wholesale cash-and-carry business in India, as well as future retail investment opportunities that can be made possible through a clear and predictable FDI (foreign direct investment) policy.”
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