Bharti Retail is following its tried and tested model of acquiring small companies to kickstart its retail operations. Its much awaited retail stores in partnership with Wal-Mart are due to open in early 2008.
The Economic Times reports that Bharti may acquire Big Apple, a Delhi based supermarket chain having 65 stores and expanding itself by opening 100 more stores in NCR, Karnataka and Gujarat.
The deal may work well for Bharti as its retail operations are most probably expected to kick off from areas in Delhi and Punjab, and Big Apple already exists here. It would also give advantage in terms of a established business in various locations with a readymade supply chain.
Bharti earlier in its telecom business had acquired companies such as JT Mobile in Karnataka and Andhra Pradesh, Skycell in Chennai and Hexacom in Rajasthan to establish a pan-India presence and become India’s largest telecom player.
The deal if happens would further mark another step in consolidation in the retail industry. With entry of larger players, smaller players are facing the heat as they find it difficult to match the larger players.
Earlier too, retail industry has witnesses similar deals like Spinach - Sabka Bazaar, Aditya Birla Retail - Trinethra and Reliance Retail - Adani Retail.
Find this article at: http://www.labnol.org/india/corporate/bharti-to-adopt-telecom-experience-for-foothold-into-retail/1969/
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