IndiaRetailBiz

Walmart Stores, world’s largest multi-brand retailer with over $400 billion in annual sales and operations under 53 banners across 15 countries (including India), is lobbying hard for change of policy on foreign direct investment (FDI) in multi-brand retail in India.

Currently, while no FDI is allowed in the multi-brand segment of retail operations, up to 51 per cent of foreign equity is allowed in single-brand retail and up to 100 per cent foreign equity is allowed in cash and carry (B2B) wholesale (indirect retail) in India.

S Robson Walton, chairman of Wal-Mart Stores, according to an ET report, called on Prime Minister Manmohan Singh on Wednesday, to impress upon him the need to open the multi-brand, front-end, retail segment to foreign investors in India. Doug McMillon, Walmart’s CEO of international business, had also recently met India’s ministers of agriculture and commerce to canvas for company’s future plans for India.

India, the second fastest growing economy of the world, holds special attraction for the world’s top multi-brand American and European retailers like Walmart Inc, Carrefour SA, Tesco plc, and Metro AG to fullfil their growth ambitions, since the growth in western economies has almost become stagnant.

Walmart Stores is present India via Bharti Wal-Mart Private Ltd– a 50:50 joint venture with Bharti Enterprises (Sunil Mittal-led India’s largest private telecom player). This joint venture has already opened a cash and carry store under the brand name of Best Modern wholesale on the 30th May, 2009 at the holy city of Amritsar and is ready to open another store at Ludhiana in Punjab.

To somewhat overcome its non-presence in multi-brand retail, Walmart is also offering back-end logistic and technical support services to Bharti’s retail arm Bharti Retail, which has opened a multi-brand supermarket and mini-hypermarket retail chain called “Easyday” in several areas of North India. The retail chain was launched over a one and a half year ago in April 2008 from Ludhiana in Punjab.

According to earlier assertions, Bharti Retail will eventually become a part of Walmart Bharti’s retail JV in India, once the government agrees to change the policy for a sector that provides second largest employment in India.