Wal-Mart sees no political opposition in India venture

New Delhi, Aug 8 (agency report) World's biggest retailer Wal-Mart,
whose India entry has been mired into controversy, today said
it does not see any "political opposition" as the company has
been educating customers, bureaucracy and political parties.
"On our entry (into India) concerns were raised and we
have been constantly trying to educate customers, bureaucracy
and political parties that Wal-Mart is engaged only in the
back-end operations where 100 per cent FDI is allowed,"
Wal-Mart India chief Raj Jain told PTI.
Jain also sought to allay apprehensions about opposition
from the political class, with even UPA Chairperson Sonia
Gandhi writing to Prime Minister Manmohan Singh over concerns
raised in various quarters at the time of announcement of
Wal-Mart's India plans.
"My experience with India has been (that) irrespective of
the party in government reforms have continued. And we are
absolutely within the realms of existing law of the land."
Asked if it was a big challenge for Wal-Mart to convince
that the company was not circumventing any law to enter the
retail business, Jain said, "people are not willing to see
beyond the obvious... so it is a big challenge".
He said law in India was very clear and so was its deal
and joint venture with Bharti Enterprises. "We are not
retailing. We are only in supply chain and business-to-
business wholesale operations catering to small kirana stores,
business owners and restaurants among others."
Wal-Mart has entered into agreement with Bharti for a
50:50 joint venture to start cash and carry operations. The US
firm will also provide technical assistance to Bharti for its
retail venture. Bharti Wal-Mart Pvt Ltd, the joint venture,
plans to open up to 15 wholesale stores in big cities in next
5-7 years and will expand later.
Jain said Wal-Mart's venture with Bharti group would also
help it increase direct outsourcing from India for its
worldwide operations.
"Our direct sourcing from India has been about 600
million dollars. In the next four to five years it will grow
by several times... it will be in multiples of the current
levels," he said, but declined to give an exact figure.
Stating that a concrete shape to Bharti-Wal Mart's
business would be finalised within the next three-six months,
Jain said the JV was in talks with almost all manufacturers
"barring the auto sector" for sourcing products.
"We are also in talks with all big and small real estate
developers for our stores. We still have not decided whether
we will go for owning real estate or lease it," he said,
adding the company's stores would come up in tier II and
III cities, where population is between 10-15 lakh.
Jain said several external as well as in-house
consultants have been appointed to evaluate options for the
JV to finalise its business plans.