Walmart plans 50 new wholesale stores, e-commerce in India

Walmart has left behind the past two years of controversies and the pangs of a break-up with Indian partner Bharti, as well as the challenge posed by an unfriendly government coming to power at the centre and is now hoping to open 50 wholesale stores in India over the next 4-5 years.

According to Walmart's Asia head Scott Price, the company will also initiate its Indian e-commerce business soon.

The world's largest retailer, which broke off an alliance with Delhi-based Bharti Enterprises in October and decided against opening its own retail stores in India, said it would open 50 more wholesale stores in India over four to five years.

The company already has 20 Indian wholesale outlets, but growth has been stunted by an internal bribery probe, uncertainty over regulations on foreign investment in the country, and the severing of a partnership with New Delhi-based Bharti Enterprises aimed at opening retail stores.

Wal-Mart, which had 359 wholesale stores globally and 5,633 retail outlets in 2013, did not open a single wholesale outlet in India despite plans to open eight during the year.

"We are evaluating and reinforcing procedures and programmes relating to all compliance areas, including licensing and permits, food safety, and responsible sourcing, among others," Scott Price said in a statement announcing the rollout.

Walmart will take advantage of the government policy that allows full foreign ownership of wholesale or "cash-and-carry" to cater to the $500 billion retail business in India.

The first of the 50 new whole-sale stores are planned to be set up in states like Andhra Pradesh and Maharashtra.

Interestingly, the announcement comes a day after the Bhartiya Janata Party's (BJP's) election manifesto opposed foreign direct investment (FDI) in multi-brand retail.

Bentonville, Arkansas-headquartered retail major plans to kick-off its B2B e-commerce project to serve local kirana stores through cash-and-carry outlets this summer.

Walmart is hoping to emulate the success of as e-commerce companies such as Amazon, eBay, Flipkart and Snapdeal that follow the traditional, inventory-based e-commerce model with control over products, supply and delivery.

Walmart is also focusing on e-commerce in the US and other markets as it is a more viable option.