Walmart finally breaks in!
Saturday, December 02, 2006
The world's largest company, Wal-Mart has finally managed to bypass the Indian bureaucracy and other retailing giants like Tesco and Carrefour are likely to follow suit.
The giant has come in the disguise of Bharti. The retail shops will be owned by Bharti Enterprises under the Wal-Mart franchise. Bharti was also in talks with Tesco and Carrefour, according to London Times. Now, since Tesco has been apparently left alone by Bharti, it's time to wait and watch how it flexes its muscle. It is unlikely that TESCO would just let it go. I won't be surprised if a new name comes up in the coming months in the form of ITC, HLL or Pantaloon. Indian Retail Sector is too hot to avoid. Retailers are keen to enter the Indian market, which is growing at nearly 30 per cent a year, but are allowed only to run franchises or licenses, or operate on a cash-and-carry model, under restrictive rules on foreign investment. We are likely to see a major fight in the organized retail sector in the coming year with deep pockets players joining the foray. From what has been uncovered till date, Bharti, Reliance Industries, the Tata group and the Aditya Birla Group are in the race. Cigarette maker ITC Ltd. has also opened its first grocery stores and plans to add outlets quickly.
Though organized retail industry makes up only 3% of the $ 300 billion retail industry, this number is expected to grow 15-18 percent by 2011/12 (according to Reuters). The industry itself is forecast to grow to $427 billion in 2010 and $637 billion in 2015, according to consultancy Technopak Advisors.
What does it all mean to me? Well, I couldn't be happier. Right when the industry is ripe, I would be available to these lucky guys as their Supply Chain and Logistics Consultant. Till then, I must watch what they are upto and make my moves accordingly.
1 comments:
Anonymous
said...
4:58 AM
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i dont think any of the names u have suggested ( ITC ,HLL,PANTALOON ) would be interested in alliance of any sort with any foreign RETAIL GIANT .
They are the ones who are driving force in the RETAIL SECTOR in INDIA.( not to forget B.S. NGESH too ...)
it wont be a good proposition for them to dilute their own IDENTITY.
RUCHI