pm assignment 2 bharti walmart 31 39 - copy

7/28/2019 PM Assignment 2 Bharti Walmart 31 39 - Copy

1/16

Presented By: ANUPAM SINGH, Roll#31 & AVIK GHOSH, Roll#39


2/16

Franchised Retail Stores

Wholesale Cash and Carry

Franchise Retail Stores to Bharti

Retail under the name EASY DAY.

Wal-Mart providing expertise and

Technology

50:50 Joint Venture Back end Supply Chain Management

Cash-and-carry operations

Bharti-WalMart Joint Venture Structure

Access

Knowledge

of Indian

Consumer

Market

Entrepreneuri

al Sharpness

Association

to

India

Huge

Customer

Base

Experience of

Handling

Collaborations


3/16

Bharti-WalMart Presence in India

More than 5000 items, across

product categories like Fresh (Fruits,

Vegetables, Poultry, Mutton, Fish),

Dairy (Milk and Milk Products),

Consumer Packaged Goods (Food

and Non Food), General

Merchandise and HouseholdElectronics and Appliances are

offered under one roof, at low,

transparent prices to business

members.

The focus is to meet the unique

needs of every member segment likekirana shop owners, general

merchandise resellers, hotels,

restaurants, caterers, offices and

institutions by offering relevant

items at very competitive prices,

ensuring consistent availability and

member convenience.


4/16

How Wal-Mart Powers this JV

Core Philosophy

:Strengthening

Relationships

Own

Transportation

System

Daily Pricing :

Clear USP

Strong

Bargaining

Power

Indian

Suppliers

& Vendors

Cold Chain

Logisitics

Best

IT

User

Empowered

Store

Managers


5/16

Challenges to be faced ahead


6/16

Challenges to be faced ahead


7/16

Possible Strategies or Recommendations

Learn from the Mistakes of the past

South Korea & Germany

Be prepared in advance

For the variation in policies and reigns across states

Find out new ways

To maintain the flow in supply chain

Hire Local people

Giving priorities to people whose life is affected by JV.


8/16

Bharti-WalMart Projects in India

Bharti-WalMart would invest about $75 million in India by the end of this year

to open about 10 stores. Its total investment in the country could reach about

$195 million by the end of 2012.

Bharti-WalMart has so far invested about $45 million (Rs. 200 crore) in India

to open six Best Price Modern Wholesale storesfour in Punjab and one each

in Kota, Rajasthan, and Bhopal in Madhya Pradesh.

Aims to provide sustainable employment opportunities to women and

improve social and economic status

To impact lives of 25,000 women through multiple initiatives by 2016

To increase sourcing from women-owned businesses in India

Aims to empower women farmers through training--to benefit over 2500women by 2013

Created more than 2,000 job-ready women in 3 years through Bharti

Walmart Training Centres


9/16


Cashew Project: The Cashew Value Chain Initiative was set up in association with CARE India tocreate sustainable job opportunities for women in the Tsunami-hit districts of Cuddalore and

Nagapattinam. By creating opportunities for women to improve their literacy skills and acquire

training in cashew processing, this project aims to provide steady incomes to 1250 women and

enabled them to become financially independent and socially respected.

Bharti Walmart Training Centres: Currently, Bharti Walmart operates 4 Training Centres inAmritsar, Delhi, Bangalore and Zirakpur, the first three in Public Private Partnerships with the state

governments. Under this initiative, the company has trained, free of cost, over 6890 people, of

which 32% are women, to equip them with skills set for retail sector. Over 2650 people have been

placed in various jobs.

Sunhara Walmart: The Sunhara Walmart project aims to increase employability of women inUttar Pradesh. Under this project, 120 women farmers from 3 villages have already been trained.

We intend sourcing products from these women entrepreneurs by end-2011. By 2013, the project

will impact the lives of 2500 under-privileged women.

Education: Our Education initiatives are aimed at improving the quality of education for childrenin Government and NGO-run schools. We have partnered with Bharti Foundation and HOPE

Foundation to adopt 50 schools and impact 20,000 children, of which 75% will be girls.


10/16


Nurturing small businesses

Bharti Walmart has a dedicated development team that works closely with all

its supplier partners especially the smalle merging enterprises. Delicia Food

started in 2008 by supplying jams and marmalades to Bharti Walmart.

Bharti Walmart also arranged for an Accelerated Shelf-life Test for products

and advised Delicia to start the process leading to an ISO 220000 certification,

an international food safety management system. After subsequent training,

Delicia is now certified for ISO 220000, an international food safety

management system. The company is now doing business both in India andabroad. It has moved beyond just jams now, to producing canned fruits, baby

corns and ready to eat vegetable curries. Bharti Walmart now also sources

canned fruits and baby corn from Delicia.


11/16


Wal-Mart plans to enter Gujarat through the NRG-rich belt of Gujarat - Anand, also

India's milk capital.

Wal-Mart, through its Indian joint venture Bharti Wal-Mart Pvt Ltd, has kicked off

work on the project on Anand-Sojitra Road. This will be its first mall in Gujarat in the

wholesale format. Like in other states, the mall in Anand will operate under the 'Best

Price Modern Wholesale' name. The 50,000 sq feet mall is coming up on three acres ofland, which as per present jantri rates costs Rs 4.37 crore. They have plans to open 12-

15 new Best Price Modern Wholesale stores in 2012, mainly in south and west India.

The company was also in talks with an Ahmedabad based realtor for a 20,000 square

yard land along SG Road. But, for some reasons, the deals were not struck.

Bharti plans to raise Rs 500 crore from global banking majors such as Citigroup, JPMorgan Chase, Deutsche Bank and BNP Paribas, to fund its expansion plans. Bharti

Walmart planned to set up 10 to 12 wholesale cash and carry centres in 2012, which

would generate employment for 5,000 people. The investment envisaged in each centre

is around Rs 50-60 crore. At present, Bharti Walmart has 17 stores across the country.


12/16


Bharti Walmart is looking to work with 25,000 farmers in India by 2015, compared with

current levels of only 4,000.

They are leveraging their association with ASDA Walmart UK and providing export

market access to Indian farmers. They believe there are increasing opportunities to

export produce from India including musk melon, pomegranate and rice. A trial

scheme had seen grapes sourced from farmers in Maharashtra for ASDA stores.Walmart is not only looking tap into produce from more farmers in India, but also to

expand the types of produce that will be procured. Currently they source vegetables

from farmers. They are also working on developing exclusive crops such as seedless

watermelon.


13/16

PUGH Matrix for Project PrioritizationS

r

Project Relia

bility

0.20

Channel

Reach

0.20

National

Footprint

0.15

Brand

Image

0.10

Cust.

Exp.

0.10

Supply

Chain

0.15

Tech.

Upgrade

0.10

Total

Weighte

d Score

Ra

nk

1 Entering into the South IndianMarket

4 4 5 3 3 3 4 3.80 4

2 Entry into Gujarat through setting up

stores in Anand4 4 4 4 4 3 3 3.75 6

3 Cost cutting approaches to get out of

net losses5 3 3 3 3 5 4 3.80 5

4 Raise Rs. 500 crore globally to fund

expansion plans in India5 5 4 4 4 5 2 4.35

15 Setting up Six Best Price Modern

Wholesale store for across India

expansion

4 4 5 4 4 4 3 4.05 2

6 Partnership with Maharashtra

Government to launch Bharti

Walmart Training Centre in Jalna

4 4 3 5 4 3 3 3.70 7

7 Expansion of local sourcing base to

25000 farmers from 4000 by the

year 2015

5 3 4 4 3 4 4 3.90 3

8 Sunhara Walmart Project to

increase women employability in UP4 3 2 5 3 3 3 3.25 9

9 Cashew Value Chain Initiative to

create sustainable job opportunities

for women

4 3 3 5 4 4 3 3.65

8

Bh i W lM T 3 S l d P j


14/16

ProcessChange

R&D

Breakthrough

Platform

Derivative

New Core productNext Generation project Addition to product family

Derivatives and

enhancements

More

Incremental

changes

Single

Departmentupgrade

Nextgeneration

process

New core

process

1

7

3

4

9

2

5

6

8

Bharti-WalMart : Top 3 Selected Projects


15/16

Bharti-WalMart : Top 3 Selected Projects

Bharti plans to raise Rs 500 crore from global banking majors such as Citigroup, JP

Morgan Chase, Deutsche Bank and BNP Paribas, to fund its expansion plans. Bharti

Walmart planned to set up 10 to 12 wholesale cash and carry centres in 2012, which

would generate employment for 5,000 people. The investment envisaged in each centre

is around Rs 50-60 crore. At present, Bharti Walmart has 17 stores across the country.

Bharti Walmart is looking to work with 25,000 farmers in India by 2015, compared withcurrent levels of only 4,000.They are leveraging their association with ASDA Walmart UK

and providing export market access to Indian farmers. They believe there are increasing

opportunities to export produce from India including musk melon, pomegranate and

rice. Walmart is not only looking tap into produce from more farmers in India, but also

to expand the types of produce that will be procured. Currently they source vegetables

from farmers.

Bharti-WalMart has so far invested about $45 million (Rs. 200 crore) in India to open six

Best Price Modern Wholesale storesfour in Punjab and one each in Kota, Rajasthan,

and Bhopal in Madhya Pradesh.


16/16

Thank You

pm assignment 2 bharti walmart 31 39 - copy

Documents