Bharti to invest $2.5 billion in retail venture in eight years

New Delhi: Bharti Enterprises plans to invest $2-$2.5 billion by 2015 in its retail venture that would be launched under its wholly-owned subsidiary, Bharti Retail (Pvt) Ltd. The company plans to use a mixture of internal accruals, debt and equity to raise the money. The company says it is looking at around 10 million sq ft of retail space pan India, and would employ around 60,000 people in its retail outfit.

Bharti Retail will launch its retail outlets in multiple formats that would include hypermarkets and supermarkets. For the smaller format convenience stores, the company is looking at partnering with existing local storeowners across the country through a franchise model. The company plans to roll out its first store by the first quarter of 2008, beginning with areas having a population of over a million, and will later foray into smaller towns and cities. The company hopes to earn around $5 billion by 2015 from its retail initiative.

Bharti Retail, however, made it clear that its current announcements did not include its plans with its joint venture partner Wal-Mart.

The company said it is in talks with Wal-Mart regarding the cash-and-carry format, and would make announcements as soon as everything was finalised. The company, in November 2006, had made public its alliance with Wal-Mart, the world's largest retail chain, for back-end support in its wholesale retailing initiative, where Bharti itself will handle the front-end operations.

Wal-Mart's vice-Chairman and overseas operation head, Mike Duke, is set to visit India on February 22, when a possible announcement on the joint venture is expected.