Planet Retail 11 Apr 2008

Speaking at the World Retail Congress in Barcelona yesterday, the boss of Bharti Enterprises, Rajan Bharti Mittal, said that India is seeing a "gold rush" in its fledgling retail industry. He said the company had decided to enter the retail sector due to the purchasing power of India's burgeoning urban middle class and young population. "India is ready for the retail experience and we must realise that India is a country with a young population; there are 720 million people below 35 years of age. There is a gold rush in Indian retailing - good, bad or indifferent, that's where it is heading to." Mittal insisted that opposition would fade as organised retail's "many benefits" emerge.

"I am very convinced that all will have a place in the market to co-exist. India will find its own model and it will be a co-existence and inclusive model," he said. "You will see that opposition diluted as the Indian political leadership sees the fruits of success of [organised retail] and that it benefits the people at large." Bharti is developing a joint venture with Wal-Mart Stores to open cash & carry outlets. Mittal said both Bharti and Wal-Mart brought something unique to the partnership. "We understand the Indian consumer and we understand the Indian environment and we have got partners who understand the entire retailing science and art. This is a partnership of choice." He forecast that Bharti's retail business could, in the next "five to seven years", reach the size of its telecoms operations, which is worth some USD10 billion.

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