IndiaRetailBiz

Walmart Stores Inc, the world’s largest retailer, which operates a retail JV with India’s telecom behemoth Bharti Enterprises (Bharti Walmart Retail Limited), is satisfied with its results and is looking at expanding the footprint of its cash and carry stores in India. This was stated by Anand Sharma, Commerce & Industries minister of India, while talking with media persons during the India Economic Summit held in New Delhi.

“Wal-Mart is very satisfied with the results in India. I was informed by the Wal-Mart CEO that they are looking at opening more stores. He gave a figure of 40 more stores across the country in the immediate future.”

It may be recalled that S Robson Walton, scion of Walmart’s founder Sam Walton and present Chairman, was recently in India. Walton, during his visit to the country last week, had a meeting with India’s Prime Minister Manmohan Singh and Commerce & Industries Minister Anand Sharma to discuss retail sector in India.

Walton is keen that India initiates policy changes for foreign direct investment (FDI) in retail sector of India. He wants the government to lift the ban on entry of MNC retailers in multi-brand front-end retail by allowing them to invest in this segmen of retail business. Currently, India allows FDI of up to 100 per cent in cash and carry and of up to 51 per cent in single brand retail.

Walmart has so far set up a solitary cash and carry store under the brand name “Best Price Modern” wholesale Store at Amritsar in Punjab. The store set up by 50:50 JV between Walmart and Sunil Mittal-led Bharti group was launched on the 30th May, this year. To prepare manpower for the company’s existing and future stores as well as to help the retail industry meet its human resources requirements, the JV under PPP initiative has also set up training academies in partnership with the government of Punjab. These academies are offering courses in different aspects of retail business to rural and unemployed youth coming from nearby towns and villages.

Sunil Mittal, Chairman of Bharti group, though eching the sentiments of Walmart’s Chief, was little cautious on the retail venture’s expansion plans for cash and carry business. According to Mittal, while more and more cash and carry stores will be opened every few months, the company will not go very fast on the same. The company will follow a measured approach, said Mittal.