Bharti takes franchisee route
Bharti Enterprises today made it clear that its retail foray will be a franchise agreement with a global retailer. “We can either opt for cash and carry model or franchisee route. We are clear that it will be the latter,” Sunil Mittal, chairman, Bharti Enterprises, said.
Mittal added that the foreign retail partner would be finalised in early October. Talks have been held with US-based Wal-Mart, Britain’s Tesco Plc and French retailer Carrefour for retail plans. Tesco is believed to be the front-runner for the foray.
As per the present guidelines, 51 per cent foreign direct investment is permitted and that too only in single-brand retail.
Global multi-brand retailers can enter the country only through the franchise route, or operate on cash and carry model, like Metro AG.
Mittal also made it clear that he would forge a joint venture for the retail foray. In the front end, no joint venture is permitted between a global multi-brand retailer and an Indian partner.
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September 28th, 2006
India is definetly a country with big perspectives in all areas, specially franchising.
Jack, keep on the nice job, I really enjoy your blog.
Best wishes,
Lisa