American Wal-Mart to Emerge as a Dominant force in North India

American retail giant, Wal-Mart through its tie up with Bharti Retail could emerge as an dominant force in North Indian given that the states of Rajasthan, Haryana, Delhi and Uttarakhand would implement the policy and if Punjab were to join it would give significant to Bharti Wal-mart given their strong already presence in these regions through cash and carry as well front end Easyday stores.

If you observe in the map as shown above, geographically these states are contiguous and hence would give it significant advantages in supply chain (already working with almost 2,000 suppliers). We highlight that 9 of the 17 cash and carry stores they operate are in North India, We note that although there are 195 easy day outlets over 180 of them are convenience stores, most of them in North India. With clarity on the policy we could see the roll out of its large format stores.

Also the FDI policy excludes investment in front end stores for the calculation of investment in back-end and this seems to suit Wal-mart well as they are yet to invest sizably in large format stores (15) and is most likely to focus on the above mentioned states for rolling out stores.

Bharti Walmart has 18 Best Price Whole Sale Retail Stores in the Cash-n-Carry format of which 5 are in Punjab, 3 each in UP and AP, 2 each in MP and Maharashtra, and 1 in Rajasthan, J&K and Chattisgrah.

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