Wal-Mart eager for retail FDI; but will have to wait
27 Apr 2010
The world's largest retailer, USA's Wal-Mart, today said it is ready to enter multi-branded retail segment in India within a year of any government decision to open up the sector to foreign direct investment.
"In case the government decides to allow FDI (foreign direct investment) in multi-branded retailing we will be happy to participate in it. We can set up our chain of stores in a matter of months ... a maximum of one year," Wal-Mart India president Raj Jain told newspersons in New Delhi today.
The Bentonville-based retailing giant's statement comes in the wake of the Indian government considering easing norms for FDI in multi-brand retailing in India. The current policy allows 51 per cent.
FDI in single-brand retail only; FDI in multi-brand segment is prohibited.
However, Wal-Mart may have to put its ambitions on hold for a while longer, as trade and commerce minister Anand Sharma told newspersons today that there is no change contemplated in India's policy on opening up the retail sector to more FDI as of now.
Jain said the company wants the government to liberalise the FDI regime in retail in the country and has conveyed this to the concerned authorities several times.
"Our supply chain is getting ready. It is difficult to say what the government has in mind but we would want it to open the multi-brand retail sector (for FDI)," Jain said.
Wal-Mart currently operates in India in a 50:50 joint venture with Bharti Enterprises in the cash-and-carry wholesale segment, where 100 per cent FDI in allowed. The JV, Bharti Walmart Pvt Ltd, has two outlets and plans to expand to 15 stores across the country within three years.
Jain, who is also the managing director and chief executive officer of the JV company, said the cash-and-carry business is progressing well and on schedule.