Tuesday, January 16, 2007

Bharti, Wal-Mart deal 'conforms to norms'

Some good news for the Bharti and Wal-Mart deal. The Economic Times reports that the Bharti and Wal-Mart tie up has been given the go ahead by the government as it 'conforms to all FDI policy norms'. A source at the Commerce and Industry Ministry, stated that "We have examined the Bharti-Wal-Mart joint venture and everything is in conformity with the existing policy on FDI in retail." Since the government has permitted FDI in wholesale cash-and-carry route, the companies do not require any government clearance. Now that the government has cleared this venture, other similar companies such as Tesco and Carrefour are likely to push forward their plans for the Indian market. The Bharti and Wal-Mart deal will involve Bharti managing the front-end operations, while Wal-Mart will take care of logistics, supply chains and other back-end issues.

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