INDIA $

- Most attractive retail destination 5% Fragmented A nation of

320 billion now -- $637 billion by 2015

CAGR

Highly

shopkeepers
14% Jobs

to Indias national GDP for 7% of workforce

Organized sector officially licensed retailers Eg. Large privately owned retail company, retail chains etc.

Unorganized sector hand cart vendors, convenience stores, paan/beedi shops, local kirana stores

Large number of working youth (median age 24) Growing number of working women Nuclear families living in urban areas Boom in services sector
Large number of working youth (median age 24) Growing number of working women Nuclear families living in urban areas Boom in services sector

 Huge

investment in retail infrastructure markets replaced by new of mall culture,

Traditional

formats
Development

supermarket, hypermarket, and departmental stores.

Food

entertainment shopping under one

 SPENCERS RPG Reliance TATA Future

group

Lack of efficient supply chain Inefficient Third part logistics services Absence of proactive channels

Cold chains Logistics infrastructure warehousing

Lack of skilled employees Inadequate quality control Variation in policy regimes across different states Stringent labour laws Lack of status as an industry therefore difficult to raise capital for expansion

Established in 1969. Top of Fortune 500 list in 2007 3 subsidiaries :

Wal-Mart International Sams Club Wal-Mart Stores Division US

9 Different retail formats Pricing Strategy

Low Pricing Strategy Always low Prices General merchandise prices set after price checks of K-Mart

and Target stores

Food Prices set on basis of zones corresponding to food

distribution centres

IT in Supply Chain Management

Think Global Act Local

Bar codes for inventory tracking Satellite communication for co-ordination Electronically order placing to suppliers Use of RFID tags

Wal-Mart international : international operations 3000 stores in 13 countries Succesful in North and South America but not in

Germany and South Korea Restricted International approach : discriminatory in entering international markets

Why Bharti ?
Market leader in Indian telecom market Thorough understanding of distribution in Indian

markets Fully aware and capable to succeed in complex environment of Indian market Capability to attract FDI

Joint Venture
2 different formats : franchised retail company &

wholesale cash and carry joint venture

 50-50 venture for back end SC

management and wholesale cash and carry operations Also different contract Walmart sharing technology & expertise to support retail stores built by Bharti Aim to link farmers directly to retailers Strong back end infrastructure Cold chain logistics

Protests by small & medium local businesses Criticised for not being socially responsible company Widely criticised for practises such as : predatory pricing, discrimination against women, squeezing suppliers Dealing with Indias unique cultural factors Supply Chain Management challenges
Underdeveloped physical infrastructure Poor quality of roads, trucking, reluctance to

adopt modern technology Cutting out middleman would create more opposition

Emergence of organised retail sector Wal-Marts joint venture with Bharti aimed at capitalizing growing middle class Bharti ideal partner for Wal-Mart Many unique challenges in India to overcome If challenges tackled , this partnership could transform Indian retail