IndiaRetailBiz

Walmart– the world’s largest big box retailer– which operates in India via its 50:50 JV with India’s private telecom giant Bharti group, is keen on expanding its operations in India. According to S Robson Walton, its chairman, the retailer is also looking at expanding its presence in China.

“Internationally, we’re focusing on larger markets. China is a big opportunity for us. We’re just getting started in India, where we see great opportunity over the long term,” said Watson, while participating in a Forbes Global CEO Conference at Kuala Lumpur (Malaysia). According to Walton, Asia is expected to lead the global economic recovery.

Walmart, which derives close to one quarter of its global revenues (over $400 billion) from outside the USA, is currently operating over 600 stores in China and Japan, though company was forced a couple of years or so ago to withdraw its operations from South Korea- another growing Asian economy in the far Eastern region.

Bharti Wal-Mart Pvt Ltd– Walmart’s Indian JV with Bharti Retail, has launched its first ‘cash and carry’ wholesale store in Amritsar from May, 2009. The store is operating under the brand name of “Best Price Modern Wholesale.” The JV company is planning to open 10 to 15 such stores, which are expected to provide employment to around 5,000 persons. Walmart had to reconcile with launching its operations through ‘cash and carry’ route as no foreign direct investment (FDI) is allowed in multi-brand, front-end retail under current policy framework of India.

Walmart’s Indian partner, though, is quite hopeful of change in the policy soon. According to Rajan Mittal, vice chairman of the group, who supervises the group’s retail initiative, Bhartis are expected to achieve $ 1 billion in retail sales and employ around 60,000 people by 2015.

In view of the present policy hurdles, Bharti Retail has already forayed into front-end, multi-brand, retail on its own. It operates a general merchandise retail chain called “Easyday” comprising 28 stores under supermarket (26) and mini-hypermarket (2) formats in Punjab and Haryana. The retail chain is looking at adding 40 new stores in NCR during this quarter before the end of calendar 2009.