Wal-Mart Indian venture to post 4-5 year loss

NEW DELHI According reports, the joint retail venture between Bharti Enterprises and Wal-Mart Stores will likely post losses for four to five years.

Bharti's chairman Sunil Mittal, reportedly said that due to high rental costs in India, the 50:50 joint venture, called Bharti Wal-Mart Pvt. Ltd. is not expected to turn a profit for several years. According to reports, rentals as a percentage of sales in India are close to three times that of the global average.

Under the joint venture, Bharti Wal-Mart plans to open 15 facilities over the next seven years.