Bharti Walmart’s Net Worth Erodes Despite Rising Sales Co had accumulated losses of . 765 crore as on December 2011

 Bharti Walmart, the joint venture between the world's largest retailer Walmart and Bharti Enterprises, which accumulated a net loss till December 2011 has eroded its net worth even as the firm more than doubled its sales last year by adding around a dozen new stores. "The accumulated losses of Bharti Walmart as on December 31, 2011, amounting to . 765 crore has resulted in erosion of net worth as on that date," the company said in its filing to the Registrar of Companies (RoC). 

This comes at a time when several retailers either announced or entered cash-and-carry operations in the country last year, especially foreign ones, such as Carrefour, which cannot open front-end retailstores on its own under the foreign direct investment norms. The relatively established wholesalers – Bharti Walmart and Metro AG – have so far almost a dozen cash-and-carry stores each with plans to open several more in the next two years. 

During the year, Bharti Walmart posted a 143% increase in sales at . 1,876 crore but net loss rose by 66% to . 277 crore for the January-December period last year as per the ROC filing. The company also raised around . 500 crore in short-term loan through banks including Citibank, BNP Paribas and HSBC. 

The Walmart India's spokeswoman said they are investing in logistics and back-end supply chain system, in addition to opening Best Price Modern Wholesale Cash & Carry stores to service their members. "These require significant investments and have a long gestation period. We are on plan on the overall business performance and consequent loan drawdowns," said the spokewoman. Bharti Walmart opened 10 Best Price Modern Wholesale last year, doubling the number of outlets since they opened their first store in 2009. 

Off the Shelf 

• This comes at a time when several retailers either announced or entered cash-and-carry operations in the country last year 

• During the year, Bharti Walmart posted a 143% increase in sales at . 1,876 cr but net loss rose 66% 

• Co is investing in logistics, backend supply chain system and opening Best Price Modern Wholesale Cash & Carry stores