Wal-Mart will enter venture in India

NEW DELHI -- Wal-Mart Stores Inc., the world's biggest retailer, plans to set up a venture with Indian billionaire Sunil Mittal, gaining access to the second-most populous nation as the government considers tempering restrictions on overseas ownership.

Mittal, 49, selected Wal-Mart as an equal partner with his Bharti Group after Tesco PLC dropped out of talks. Bharti will own the stores, and the partners will form an equal joint venture for the supply chain and wholesale businesses, he told reporters at a news conference.

By allying with Mittal, owner of India's most valuable mobile phone company, Wal-Mart wants to gain a start on Tesco and Carrefour SA in India, where sales through store chains are forecast to rise 15-fold to $60 billion by 2015. Wal-Mart is doubling its stores in China by acquiring Trust Mart to revive a stuttering overseas expansion plan.

"It's a great fit for Wal-Mart as Bharti knows the rules of the game and will save Wal-Mart a lot of time and energy to overcome the system," Viswanathan Vasudevan, who helps manage $200 million in stocks at Aquarius Investment Advisors Pte in Singapore, said. "For Bharti, you can't get a better partner than Wal-Mart in retail."

The partnership seeks to overcome rules placed on overseas ownership in India, where foreign investments are limited to single-brand merchants.