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Presented By: ANUPAM SINGH, Roll#31 & AVIK GHOSH, Roll#39
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Franchised Retail Stores
Wholesale Cash and Carry
Franchise Retail Stores to Bharti
Retail under the name EASY DAY.
Wal-Mart providing expertise and
Technology
50:50 Joint Venture Back end Supply Chain Management
Cash-and-carry operations
Bharti-WalMart Joint Venture Structure
Access
Knowledge
of Indian
Consumer
Market
Entrepreneuri
al Sharpness
Association
to
India
Huge
Customer
Base
Experience of
Handling
Collaborations
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Bharti-WalMart Presence in India
More than 5000 items, across
product categories like Fresh (Fruits,
Vegetables, Poultry, Mutton, Fish),
Dairy (Milk and Milk Products),
Consumer Packaged Goods (Food
and Non Food), General
Merchandise and HouseholdElectronics and Appliances are
offered under one roof, at low,
transparent prices to business
members.
The focus is to meet the unique
needs of every member segment likekirana shop owners, general
merchandise resellers, hotels,
restaurants, caterers, offices and
institutions by offering relevant
items at very competitive prices,
ensuring consistent availability and
member convenience.
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How Wal-Mart Powers this JV
Core Philosophy
:Strengthening
Relationships
Own
Transportation
System
Daily Pricing :
Clear USP
Strong
Bargaining
Power
Indian
Suppliers
& Vendors
Cold Chain
Logisitics
Best
IT
User
Empowered
Store
Managers
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Challenges to be faced ahead
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Challenges to be faced ahead
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Possible Strategies or Recommendations
Learn from the Mistakes of the past
South Korea & Germany
Be prepared in advance
For the variation in policies and reigns across states
Find out new ways
To maintain the flow in supply chain
Hire Local people
Giving priorities to people whose life is affected by JV.
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Bharti-WalMart Projects in India
Bharti-WalMart would invest about $75 million in India by the end of this year
to open about 10 stores. Its total investment in the country could reach about
$195 million by the end of 2012.
Bharti-WalMart has so far invested about $45 million (Rs. 200 crore) in India
to open six Best Price Modern Wholesale storesfour in Punjab and one each
in Kota, Rajasthan, and Bhopal in Madhya Pradesh.
Aims to provide sustainable employment opportunities to women and
improve social and economic status
To impact lives of 25,000 women through multiple initiatives by 2016
To increase sourcing from women-owned businesses in India
Aims to empower women farmers through training--to benefit over 2500women by 2013
Created more than 2,000 job-ready women in 3 years through Bharti
Walmart Training Centres
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Bharti-WalMart Projects in India
Cashew Project: The Cashew Value Chain Initiative was set up in association with CARE India tocreate sustainable job opportunities for women in the Tsunami-hit districts of Cuddalore and
Nagapattinam. By creating opportunities for women to improve their literacy skills and acquire
training in cashew processing, this project aims to provide steady incomes to 1250 women and
enabled them to become financially independent and socially respected.
Bharti Walmart Training Centres: Currently, Bharti Walmart operates 4 Training Centres inAmritsar, Delhi, Bangalore and Zirakpur, the first three in Public Private Partnerships with the state
governments. Under this initiative, the company has trained, free of cost, over 6890 people, of
which 32% are women, to equip them with skills set for retail sector. Over 2650 people have been
placed in various jobs.
Sunhara Walmart: The Sunhara Walmart project aims to increase employability of women inUttar Pradesh. Under this project, 120 women farmers from 3 villages have already been trained.
We intend sourcing products from these women entrepreneurs by end-2011. By 2013, the project
will impact the lives of 2500 under-privileged women.
Education: Our Education initiatives are aimed at improving the quality of education for childrenin Government and NGO-run schools. We have partnered with Bharti Foundation and HOPE
Foundation to adopt 50 schools and impact 20,000 children, of which 75% will be girls.
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Bharti-WalMart Projects in India
Nurturing small businesses
Bharti Walmart has a dedicated development team that works closely with all
its supplier partners especially the smalle merging enterprises. Delicia Food
started in 2008 by supplying jams and marmalades to Bharti Walmart.
Bharti Walmart also arranged for an Accelerated Shelf-life Test for products
and advised Delicia to start the process leading to an ISO 220000 certification,
an international food safety management system. After subsequent training,
Delicia is now certified for ISO 220000, an international food safety
management system. The company is now doing business both in India andabroad. It has moved beyond just jams now, to producing canned fruits, baby
corns and ready to eat vegetable curries. Bharti Walmart now also sources
canned fruits and baby corn from Delicia.
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Bharti-WalMart Projects in India
Wal-Mart plans to enter Gujarat through the NRG-rich belt of Gujarat - Anand, also
India's milk capital.
Wal-Mart, through its Indian joint venture Bharti Wal-Mart Pvt Ltd, has kicked off
work on the project on Anand-Sojitra Road. This will be its first mall in Gujarat in the
wholesale format. Like in other states, the mall in Anand will operate under the 'Best
Price Modern Wholesale' name. The 50,000 sq feet mall is coming up on three acres ofland, which as per present jantri rates costs Rs 4.37 crore. They have plans to open 12-
15 new Best Price Modern Wholesale stores in 2012, mainly in south and west India.
The company was also in talks with an Ahmedabad based realtor for a 20,000 square
yard land along SG Road. But, for some reasons, the deals were not struck.
Bharti plans to raise Rs 500 crore from global banking majors such as Citigroup, JPMorgan Chase, Deutsche Bank and BNP Paribas, to fund its expansion plans. Bharti
Walmart planned to set up 10 to 12 wholesale cash and carry centres in 2012, which
would generate employment for 5,000 people. The investment envisaged in each centre
is around Rs 50-60 crore. At present, Bharti Walmart has 17 stores across the country.
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Bharti-WalMart Projects in India
Bharti Walmart is looking to work with 25,000 farmers in India by 2015, compared with
current levels of only 4,000.
They are leveraging their association with ASDA Walmart UK and providing export
market access to Indian farmers. They believe there are increasing opportunities to
export produce from India including musk melon, pomegranate and rice. A trial
scheme had seen grapes sourced from farmers in Maharashtra for ASDA stores.Walmart is not only looking tap into produce from more farmers in India, but also to
expand the types of produce that will be procured. Currently they source vegetables
from farmers. They are also working on developing exclusive crops such as seedless
watermelon.
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PUGH Matrix for Project PrioritizationS
r
Project Relia
bility
0.20
Channel
Reach
0.20
National
Footprint
0.15
Brand
Image
0.10
Cust.
Exp.
0.10
Supply
Chain
0.15
Tech.
Upgrade
0.10
Total
Weighte
d Score
Ra
nk
1 Entering into the South IndianMarket
4 4 5 3 3 3 4 3.80 4
2 Entry into Gujarat through setting up
stores in Anand4 4 4 4 4 3 3 3.75 6
3 Cost cutting approaches to get out of
net losses5 3 3 3 3 5 4 3.80 5
4 Raise Rs. 500 crore globally to fund
expansion plans in India5 5 4 4 4 5 2 4.35
15 Setting up Six Best Price Modern
Wholesale store for across India
expansion
4 4 5 4 4 4 3 4.05 2
6 Partnership with Maharashtra
Government to launch Bharti
Walmart Training Centre in Jalna
4 4 3 5 4 3 3 3.70 7
7 Expansion of local sourcing base to
25000 farmers from 4000 by the
year 2015
5 3 4 4 3 4 4 3.90 3
8 Sunhara Walmart Project to
increase women employability in UP4 3 2 5 3 3 3 3.25 9
9 Cashew Value Chain Initiative to
create sustainable job opportunities
for women
4 3 3 5 4 4 3 3.65
8
Bh i W lM T 3 S l d P j
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ProcessChange
R&D
Breakthrough
Platform
Derivative
New Core productNext Generation project Addition to product family
Derivatives and
enhancements
More
Incremental
changes
Single
Departmentupgrade
Nextgeneration
process
New core
process
1
7
3
4
9
2
5
6
8
Bharti-WalMart : Top 3 Selected Projects
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Bharti-WalMart : Top 3 Selected Projects
Bharti plans to raise Rs 500 crore from global banking majors such as Citigroup, JP
Morgan Chase, Deutsche Bank and BNP Paribas, to fund its expansion plans. Bharti
Walmart planned to set up 10 to 12 wholesale cash and carry centres in 2012, which
would generate employment for 5,000 people. The investment envisaged in each centre
is around Rs 50-60 crore. At present, Bharti Walmart has 17 stores across the country.
Bharti Walmart is looking to work with 25,000 farmers in India by 2015, compared withcurrent levels of only 4,000.They are leveraging their association with ASDA Walmart UK
and providing export market access to Indian farmers. They believe there are increasing
opportunities to export produce from India including musk melon, pomegranate and
rice. Walmart is not only looking tap into produce from more farmers in India, but also
to expand the types of produce that will be procured. Currently they source vegetables
from farmers.
Bharti-WalMart has so far invested about $45 million (Rs. 200 crore) in India to open six
Best Price Modern Wholesale storesfour in Punjab and one each in Kota, Rajasthan,
and Bhopal in Madhya Pradesh.
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Thank You