{"id":3035,"date":"2013-10-09T16:24:52","date_gmt":"2013-10-09T10:54:52","guid":{"rendered":"http:\/\/www.franchisezing.com\/franchise\/?p=3035"},"modified":"2013-10-09T16:24:52","modified_gmt":"2013-10-09T10:54:52","slug":"bharti-wal-mart-dissolve-franchise-agreement-for-retail-business","status":"publish","type":"post","link":"https:\/\/www.franchisezing.com\/franchise\/bharti-wal-mart-dissolve-franchise-agreement-for-retail-business\/","title":{"rendered":"Bharti, Wal-Mart Dissolve Franchise Agreement For Retail Business"},"content":{"rendered":"

\"Wal-Mart<\/a><\/p>\n

Wal-Mart Stores Inc and Bharti Enterprises are breaking up their Indian joint venture and will own and operate separate businesses in the country, the companies said in a joint statement on Wednesday.<\/p>\n

Bentonville, Arkansas-based Wal-Mart, the world’s biggest retailer, tied up with Bharti in 2007 and had been the most vocal proponent of prying open India’s restrictive retail<\/a> market to foreign supermarket operators.<\/p>\n

However, its growth in India has been hindered by still-evolving rules on foreign investment, an internal bribery probe, and, more recently, the faltering partnership with New Delhi-based Bharti, which Reuters reported in July.<\/p>\n

Under terms of their breakup, Wal-Mart will acquire Bharti’s 50 percent stake in Bharti Wal-Mart Pvt Ltd, which runs about 20 wholesale stores in India under the Best Price Modern Wholesale brand, and will run the business independently.<\/p>\n

“Given the circumstances, our decision to operate independently will be beneficial to both parties,” Scott Price, president and chief executive of Walmart Asia, said in the statement.<\/p>\n

On Sunday, Price told Reuters in Nusa Dua, Indonesia, that its retail<\/a> plans with Bharti were “not tenable” and that both sides were looking for the best way forward.<\/p>\n

“Walmart is committed to businesses that serve our members and provide good returns for our shareholders and we will continue to advocate for investment conditions that allow FDI multi-brand retail in India,” he said in Wednesday’s statement.<\/p>\n

Bharti, which is also the parent company of Bharti Airtel, India’s biggest mobile phone carrier, will acquire the compulsory convertible debentures (CCDs) held by Wal-Mart in Cedar Support Services, a company owned by Bharti.<\/p>\n

Bharti Retail will continue to operate its easyday retail<\/a> chain, which numbers 212 stores.<\/p>\n

India last year allowed foreign supermarket companies to own up to 51 percent of their local operations, but no company has applied to enter Asia’s third-largest economy under the rule.<\/p>\n

Wal-Mart said it will work with the government to create conditions that enable foreign direct investment in India’s supermarket sector. <\/p>\n","protected":false},"excerpt":{"rendered":"

Wal-Mart Stores Inc and Bharti Enterprises are breaking up their Indian joint venture and will own and operate separate businesses in the country, the companies said in a joint statement [ … ]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[787,4],"tags":[],"class_list":["post-3035","post","type-post","status-publish","format-standard","hentry","category-news","category-retail-news","list-style-post"],"_links":{"self":[{"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/posts\/3035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/comments?post=3035"}],"version-history":[{"count":0,"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/posts\/3035\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/media?parent=3035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/categories?post=3035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchisezing.com\/franchise\/wp-json\/wp\/v2\/tags?post=3035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}