Amritsar, May 30 - Bharti Wal-Mart, the joint venture between Bharti Enterprises and US-based Wal-Mart Stores Inc, which today opened its first cash-and-carry store here, said it will invest over USD 100 million (about Rs 470 crore) in setting up 15 more such outlets in next 3-4 years.
Bharti Wal-Mart will offer foodgrain up to 5 per cent lower than the prevailing wholesale rates, a top official of the JV said.
The next store is likely by the end of this year. The company has plans to invest over USD 100 million in 15 new stores in next 3-4 years, Bharti Enterprises Vice-Chairman and MD Rajan Mittal told reporters here.
Ò... investment in each store will be about USD 6-7 million without land and building ... I am only talking about the insight of the store,Ó Mittal said.
Spelling out the JV's pricing plans, Bharti Wal-Mart MD and CEO Raj Jain said, ÒFoodgrain and cereals are two to five per cent cheaper, FMCG products are cheaper by 10 per cent while the apparels and general merchandise are less up to 25 per cent cheap,Ó
The firm will open stores initially in Punjab, Haryana, Delhi, Madhya Pradesh and Uttar Pradesh but later it would spread to other parts of the country.
ÒWe will eventually go pan-India,Ó Mittal said.
The cash-and-carry store under the brand name of 'BestPrice Modern Wholesale' is offering an assortment of around 6,000 items, including food and non-food items.
On allowing FDI in multi-band retail, Mittal said, ÒIt is not about only brining money into India.Ó
ÒWe will cross the bridge when it happens,Ó Mittal said referring to the joint venture partner's considering a decision after the government approves FDI in multi-brand.
Foreign direct investment is not allowed in multi-brand retailing.
The joint venture between Bharti Enterprises and Wal-Mart Stores Inc was inked in 2007.
The company had last year announced that its cash-and-carry stores would be opened under the brand name of 'BestPrice Modern Wholesale'.
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