Bharti plans 3-tier retail launch, mulls own label

By Rachel Sanderson

BARCELONA (Reuters) - Bharti Enterprises is planning a "three-pronged" launch on India's retail scene together with world leader Wal-Mart Stores Inc but a short supply of real estate is proving a challenge, managing director Rajan Bharti Mittal said in an interview.

Bharti is due to unveil the opening programme of its joint venture with the world's largest retailer by the end of this month after delays blamed at least once on India's tough legislation against foreign investors.

Mittal, speaking to Reuters in an interview late Thursday, said the brand identity of the new venture was still under discussion but the deal was otherwise on track.

"We are looking for at a three-pronged strategy with smaller convenience-style stores of 3,000 square feet, supermarkets of 35,000 to 40,000 square feet and hypermarkets of 75,000 to 125,000 square feet," Mittal said on the sidelines of the annual World Retail Congress.

India's retail industry, valued at nearly $350 billion, is forecast to double in size by 2015 with modern retail's share set to increase from about 3 percent now, according to research by Technopak Advisers.

Bharti has pledged to spend $2.5 billion to 2015 on the new stores and expects to open 10 to 15 stores in seven years.

Other considerations were the possibility of launching own label products a few years down the line, he added.

The stores will compete with Germany's Metro, Dutch food retailer SPAR International, India's Reliance Industries, the RPG Group, the Tata group's Trent Ltd, as well as Pantaloon Retail India and Shopper's Stop Ltd.