Bharti, Walmart end India JV, to operate separately 

NEW DELHI: The world’s largest retail chain, Walmart Stores Inc, and Sunil Mittal-led Bharti Group have called off their six-year-old alliance in India, both companies said in a joint statement issued on Wednesday, bringing the curtains down on a troubled deal marred by government-probes and allegations of corrupt practices.

Walmart will acquire the Indian partner’s stake in the 50:50 wholesale venture with Bharti group, which was set up in 2007 and runs cash-and-carry stores under the Best Price Modern Wholesale brand, making it a 100% subsidiary of the US giant. t was not known whether Walmart will partner with any local firm for its India retail foray, although speculation is rife about a possible tie-up with a prominent South India-based company.
“Given the circumstances, our decision to operate independently will be beneficial to both parties. We wish Bharti well as they grow their retail business,” said Scott Price, president and CEO, Walmart.
“Bharti is committed to building a world-class retail venture and will continue to invest in Bharti Retail across all formats. We wish Walmart the very best for the future,” said Rajan Bharti Mittal, vice-chairman and MD, Bharti Enterprises.
Bharti Retail, which currently runs 212 front-end multi-brand stores, is believed to be in discussions with Indian and foreign retail chains for a fresh joint venture.
As part of the proposed transactions, Bharti will also acquire the compulsory convertible debentures (CCDs) held by Walmart in Cedar Support Services, a company owned and controlled by Bharti that operates front-end retail stores under the brand name Easy Day.
Walmart had the option of converting into equities $100 million (`456 crore then) it had lent to the Bharti Group in 2010 in a deal, which Indian authorities are probing for flouting rules. The deadline for converting these funds into equities lent through CCDs ended on September 30.

HT had first reported on September 9, 2013 about the parting of ways by the two partners.
“They (both companies) have reached an agreement to independently own and operate separate business formats in India and dis-scontinue their franchise agreement in the retail business. The agreement is subject to finalisation of definitive agreements and receipt of the requisite regulatory approvals,” the joint statement said, ending weeks of speculationn about the likely fallout.
NAME- RAJ GAURAV
 PGDM 1 SEM