Walmart keen on India, studying new retail FDI norms
10 Sep 2013
US-based Walmart Stores, the world's biggest supermarket chain, on Monday said it is optimistic about expanding its wholesale cash and carry business in India, which it runs in partnership with Bharti Enterprises.
Amid reports that the two companies are on the verge of ending their six-year-old partnership, Walmart said India is an important market for it and the company continues to study the implications on its business of the new policy on foreign direct investment in retail.
"Walmart is optimistic about growing our Best Price Wholesale cash and carry business in India, as well as future retail investment opportunities that can be made possible through a clear and predictable FDI policy," a Walmart India spokeswoman told PTI in an e-mailed reply.
Bharti Walmart is a 50/50 joint venture between Walmart and Bharti Enterprises, and operates wholesale stores under the Best Price brand name.
There are persistent reports that Walmart is not happy with its relationship with Bharti, and may announce a pull-out at the end of this month. Walmart is also reported to have begun talks with other companies firms for a front-end retail foray in India.
The Walmart investment in Bharti is being probed by the Enforcement Directorate for alleged flouting of norms.
However, the Walmart spokeswoman said, "We are in compliance with India's FDI guidelines and we have cooperated with the government during this process. The central government has sought information and clarification that has been provided by us."
Stressing on the importance of Indian operations in company's global portfolio, she said, "India is an important market for us … we think India's best days are ahead, and we are excited to be a part of this opportunity."
She said the change in norms for FDI in retail "will improve shopping options for customers, provide new markets to local suppliers and farmers, and improve supply chain infrastructure in the country".
