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Wal-Mart has partnered with the Bharti Group, led by chairman Sunil Bharti Mittal, to bring Wal-Mart (WMT) into India.

The details of the partnership are being forged at this time, as in the beginning it will be a cash-and-carry (wholesale) joint venture with Wal-Mart. The reason for coming in the back end of the business is because of the Indian government ban on foreign direct investment (FDI) in the retail sector.

Sunil Bharti Mittal has an option with Wal-Mart for the front end saying, “Whenever government opens up FDI in retail, Wal-Mart is absolutely welcome to come into the front-end.”

“Wal-Mart will be brought to the front end in partnership with us… Why have they partnered us for the back-end business otherwise?”

There are no limitations in India for the back end side of the business where FDI is allowed up to 100 percent.

Mittal said that at this time they are working with Wal-Mart to decide if the Wal-Mart brand name will be used in the front end (retail).

“We are in the process of taking a decision on this, but work on the retail venture is ongoing. Land is being acquired at various places and we have already hired a competent team of people,” he said.

If the Wal-Mart name is used, Wal-Mart will receive royalties for the usage.