High real estate costs is the largest challenge to deal with in the retail business foray in India, Bharti Walmart managing director & chief executive Raj Jain said.

Mr. Jain said that low price retailers like Bharti Walmart would not be able to offer great prices to customers due to very high rentals.

Speaking on the topic, he said, "The largest challenge has to do with real estate in large cities where FDI has been opened up. If we pay too much of rentals, we cannot offer great prices to our customers."

Mr. Jain pointed to high real estate costs as many retailers are already complaining about tough government conditions for foreign retailers to enter Indian multi-brand retail sector. For example, multi national companies can open their retail stores only in those cities that have a minimum population of 10 lakh.

The government of India opened the Indian multi-brand retail sector, domestic airlines and some parts of broadcasting sector to foreign investors around a week ago, as a part of its efforts to provide a boost to the economy.

The chief of Bharti Walmart, the joint venture (JV) between Bharti Enterprises and Walmart Stores Inc, also complained about bad supply chain environment in big cities.

Mr. Jain was talking to reporters in Hyderabad after launching Bharti Walmart's third wholesale store in Andhra Pradesh. The total number of Bharti Walmart stores in India is now 18. Mr. Jain also said that the joint venture partners would confirm their strategy for Indian retail foray in the next four to six weeks.