Speculation mounts over joint venture
Indian business Bharti Enterprises is nearing a deal to partner with one of the world's biggest retailers, and local media reports have indicated that Wal-Mart, not Tesco, is the favourite.

However, a spokesman for the Bharti group, which controls India's biggest mobile services provider, said the company had not yet finalised its decision. The company declined to specify when a deal may be finalised and said: 'We are still in talks with all the global majors.'

Bharti chairman Sunil Mittal said in October that it was likely that a deal would be struck by the end of November.

Retail Week also revealed in October that Tesco chief executive Sir Terry Leahy held talks with Tony Blair and his Indian counterpart, Dr Manmohan Singh, over improving trade relations with the subcontinent.

At present, multi-brand foreign retailers are unable to open in India without a local partner, although this is not the case for wholesalers.

The Indian retail industry is estimated at about US$300 billion (£158.34 billion) and is forecast to grow to US$427 billion (£225.38 billion) by 2010 and US$637 billion (£336.23 billion) in 2015, according to consultancy Technopak Advisors.

At present, organised retail comprises only 3 per cent of the Indian market, compared with 20 per cent of China's market and 40 per cent of Thailand's.

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