Tata Group is likely to pick a 49 percent stake in Walmart India’s cash-and-carry ‘Best Price Modern Wholesale’ business.
Sources said the Tata Group, which is India’s most respected corporate giant, is likely to join hands with Walmart India, which plans to expand its footprint across India.
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At present, Walmart India operates 28 ‘Best Price’ stores in India and owns a majority stake in Flipkart Group (Flipkart, Myntra).
And, this would be Tata Group’s first entry into the segment.
The deal is apparently in the final stage, and is likely to be announced during the next couple of weeks.
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Sources said the official announcement on the agreement with the Tata Group was to be announced by Walmart International president and CEO Judith McKenna during his recent visit to New Delhi.
But the announcement had to be postponed because the deal could not be finalized, and top honchos of both the corporate giants are now working on it.
Both Walmart India and Tata Group are tight-lipped on the development.
Walmart India is reportedly extra cautious with the agreement because of its ill experience of joint-venture in India.
Initially, Walmart had a joint venture with Bharti Enterprises in 2007, which fell through in 2013.
Similarly, the Tata Group is also reportedly cautious with the agreement after the recent decision of the National Company Law Appellate Tribunal to reinstate Cyrus Mistry as Tata Sons Chairman.