"We can either opt for cash and carry model or franchisee route. We are clear that it will be the latter," Sunil Mittal, chairman, Bharti Enterprises, said.
Mittal added that the foreign retail partner would be finalised in early October. Talks have been held with US-based Wal-Mart, Britain's Tesco Plc and French retailer Carrefour for retail plans. Tesco is believed to be the front-runner for the foray.
As per the present guidelines, 51 per cent foreign direct investment is permitted and that too only in single-brand retail.
Global multi-brand retailers can enter the country only through the franchise route, or operate on cash and carry model, like Metro AG.
Mittal also made it clear that he would forge a joint venture for the retail foray. In the front end, no joint venture is permitted between a global multi-brand retailer and an Indian partner.
However, the joint venture that Mittal referred to is probably between Bharti and another player for real estate or logistics. This is because global retailers prefer to have 100 per cent ownership of the back-end operation.
Assuming the deal goes through with Tesco, FieldFresh, the joint venture between Bharti Enterprises and ELRo Holdings, is expected to supply fruits and vegetables for Tesco's Indian operations.
Besides this, FieldFresh is also looking to sell to Indian retailers such as Reliance Retail, The Future Group (formerly Pantaloons) and RPG.
