Amritsar, June 9 (ANI): With the Government allowing Foreign Direct Investment (FDI) in wholesale retailing, Bharti Wal-Mart private limited, the joint venture between Bharti enterprises and Wal-Mart has opened its first cash-and-carry store-in Amritsar.
The first sales outlet of Wal-Mart has been opened in India as part of an ambitious plan to establish a foothold in the country's vast consumer market.
The U.S. discount chain has teamed up with Bharti Enterprises, the parent company of India's biggest mobile firm Bharti Airtel in a wholesale joint venture to be called 'Best Price Modern Wholesale'.
The opening of Wal-Mart's first outlet in Amritsar city is a high stake one for the U.S. retailer, which has been expanding internationally to boost its revenues.
The Best Price Modern Wholesale will offer 6,000 food and non-food items at competitive wholesale prices.
Best Price is not exactly meant for retail shoppers rather it will serve small stores, fruit and vegetable sellers, restaurants, hotels and other business outlets.
Following foreign investment rules and restrictions, foreign groups like Wal-Mart can only be wholesalers and must partner with domestic companies to enter the retail market, which is valued at 400 billion dollars.
Wholesale retailing too has wide scope in India and retailers are thrilled to do purchasing from organized wholesale store.
"The sellers who do business on credit, they will stick to that only. The cost of goods on credit comes higher in comparison to cash and carry service. So if one does his or her business on the basis of a cash and carry service, he or she will benefit. If anything costs less on credit, we will buy it from there," said Amandeep Singh, a retailer.
"Generally, the credit period is 30 days and a difference of six to seven rupees comes at two percent. But here, on cash and carry service, we are getting a difference of 17-18 rupees. On credit, we get a benefit of two percent and on cash and carry; we get benefit of five percent, so cash and carry is better than credit. It will help increasing our trade, earning profit and also when we sell things on lower rates to the customers, our clientele will increase," said Rakesh Gupta, a retailer.
Over 90 per cent of the goods and services are sourced locally, thereby helping keep costs to a minimum and adding to the growth of the local economy, and creating job opportunities.
Cash and carry store has employed over 150 local people here.
In addition, the store offers unique 'Mera Kirana' and business solution centre to share latest business solutions with retailers and 'My Partner' programme that includes seminars, workshops and live demonstrations in business and product related matters.
Best Price Modern Wholesale is giving retailing a new definition in Punjab. By Ravinder Singh Robin (ANI)