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| Wal-Mart defers launch of its first Indian store |
| BS Reporter / New Delhi May 26, 2009, 00:07 IST |
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Bharti Wal-Mart has deferred the launch of its first Indian cash-and-carry store at Amritsar scheduled for tomorrow due to the riots that took place in Punjab following an attack on a gurdwara and the killing of a Dera leader in the Austrian capital, Vienna, on Sunday.
An official at Bharti Wal-Mart, the joint venture of the American retailer and India’s Bharti Enterprises, said the store would open as soon as possible.
“Due to the suspension of commercial activity in Amritsar, the Bharti Wal-Mart store opening has been deferred. We will open the store as soon as business activity resumes,” said Arti Singh, vice-president for corporate affairs, Bharti Wal-Mart.
Tension flared in Jalandhar and other areas in Punjab late last evening following reports of the attack on Sant Niranjan Dass, the head of Dera Sachkhand Ballan, and his second-in-command, Sant Ramanand, in Vienna, Austria.
Violence spread to more parts of Punjab and Haryana today as protestors resorted to large-scale arson, prompting authorities to call out the army in Jalandhar city and neighbouring areas and impose indefinite curfew there.
Bharti Wal-Mart plans to set up 10-15 wholesale stores in India, named Best Price Modern Wholesale. These are large stores, measuring about 50,000-100,000 sq ft each, and the JV plans to employ about 5,000 people over the next seven years.
India does not allow foreign investment in retailing but the same is allowed in cash-and-carry wholesale stores. These stores are not open for retail customers but will cater to the needs of traders, restaurant owners, hoteliers, caterers, fruit and vegetable resellers, kiranas, other retail store owners, offices and institutions.
Germany’s Metro Cash & Carry is the other player which operates five wholesale stores in India — two stores in Bangalore, and one each in Hyderabad, Kolkata and Mumbai.
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