Retail Updates

Bharti in $2.5bn retail expansion

Family-run firms dominate India's retail marketIndian conglomerate Bharti Enterprises is to pump $2.5bn (£1.28bn) into expanding its retail business. Bharti, which recently tied up with US group Wal-Mart to launch Indian-based stores, said retail would be its "big focus" for the next eight years.

The group plans to open stores in all Indian cities with a population of one million or more.
More disposable income from the middle classes has boosted India's economy, though small firms dominate retailing.

Retail boom:

"After revolutionising the Indian telecom sector, retail will be the next big focus area for Bharti," said the firm.

Under its deal with Wal-Mart, Bharti will focus on running the stores while Wal-Mart will handle the supply side of the operation.
The Indian conglomerate operates in a range of areas, from commercial agriculture, insurance and software to telecoms, in which it control's the nation's leading mobile operator - Bharti Airtel.

Organised retailing represents only 3% to 5% of Indian retailers while family-run enterprises represent the vast majority of the market. Various industry estimates put Indian retail spending at $300bn each year, with the figure set to double by 2015.

Other firms have also seen the potential for retailing growth in India, such as the private company Reliance which is launching a supermarket chain called Reliance Fresh as part of its wider growth plans.