Bharti Wal-Mart, the 50:50 joint venture between Bharti Enterprises and the world's largest retailer Wal-Mart Inc has found a firm foothold in India and is gradually scaling up local sourcing and increasing its customer connect.

Speaking on the sidelines of an event to introduce a money transfer service with MoneyGram, Mr Raj Jain, President and CEO, said a clearer policy and regulatory guidelines would help in the long-run. He said the company, which has a significant presence in North India, plans to open by the end of this year 8-10 cash-and-carry stores, which it has branded BestPrice Modern Wholesale Stores.

How has been the growth for Bharti Wal-Mart?

It has not yet been four years. We are pleased with our journey. We supply to 130-odd Bharti Retail stores and work with over 1,000 suppliers. We are developing smaller suppliers and working directly with farmers. Also, we have got three training centres and have trained 3,000 people for the retail centre. So, we are happy with the journey. Our growth has been in double digit.

What are the demand and supply side challenges?

This country is ready and the customer is ready for shopping at modern retail and cash and carry outlets. There are different dynamics at play. The customer is looking for transparent pricing and all the stuff under one roof. On the cash and carry side, they are looking for organised credit and specialised products which are not available in the open market. On the retail side, they are looking for deals and a good shopping environment. With the price rise that we have seen, people are looking for products that are as good as brands and private labels.

How is the private label business doing?

Private labels have a good future in India. We have about 4-5 brands and 175 suppliers. It is more in food, textile, apparel, among others.

Wal-Mart is a global brand but in India you are mostly present in Tier 2 and 3 cities where demand for international labels might not be there? Aren't you killing the brand?

I disagree with you. First of all, we have not been able to use the Wal-Mart brand or stores and Wal-Mart-branded labels in India because of foreign direct investment restrictions. What we use is the Bharti Retail brand Easyday. So there is no question of using the Wal-Mart brand. In terms of products, the brands that are used are Great Value and Equate. The role of a private label is to provide good quality products that are as good as branded ones, but come at cheaper prices. And for that, the market in tier 2-3 cities is big.

What will be your stance once FDI in multi-brand retail is allowed?

There is no clarity on FDI, on whether it will open fully, partially or with a caveat. Depending on the situation, we will look at the JV. As of now, we are happy with our arrangement. We have told the Government that FDI should be opened as it will bring technology into the sector and link the farmers with the consumers.

What is the average store size? Will you go smaller with your cash and carry stores?

The average store size is 55,000 sq feet. No, we will not go smaller than this.

How many licensed customers do you have?

We have about 25,000-30,000 licensed customers per store.

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