Wal-Mart says India capex nearing Rs2,000 crore
21 Jul 2014
US retailer Wal-Mart Stores Inc is expanding business in India and plans to add another 50 stores over the next five years for which it has invested another Rs623 crore in new stores, including on working capital and fixed capital, since April this year.
This will take Wal-Mart's total investment in the country so far to Rs2,000 crore ($330 million).
Wal-Mart had, in April, announced plans to add another 50 stores over the next five years and expand its e-commerce operations in India to cater to rising consumer demand in the country.
Reports quoting Wal-Mart spokesperson for India Suneera Tandon said the funds will be used for investments in store expansion and business-to-business e-commerce in the cash-and-carry business.
Wal-Mart, which parted ways with joint venture partner Bharti Retail Ltd in October, had since infused Rs1,328 crore in its Indian operations and currently operates 20 wholesale stores. The Rs623 crore investment will take Wal-Mart's total investment in India to nearly Rs2,000 crore.
Wal-Mart, which switched to wholesale trading in India after it parted ways with partner Bharti Retail Ltd, is also investing in on-line trading as it has been assured of policy support by the newly elected Bhartiya Janata Party (BJP) government.
Wal-Mart, which has sought permission to invest in wholesale trading, where the Indian government allows 100 per cent FDI, is potentially worth $300-billion.
Besides, Wal-Mart is looking at investing in the fast-moving B2B e-commerce segment, which would allow it to sell directly to retailers from across its existing network of stores.
Wal-Mart India Pvt Ltd, proposes to start B2B e-commerce expansion with its Lucknow and Hyderabad operations by January 2015, and adding more cities gradually.