Walmart in India

November 27, 2006 at 6:13 pm (FSEM100J, portfolio)

Walmart, along with Bharti Enterprise, is planning to open within the next 5 years, hundreds of Walmarts across the country. This new movement is created conflict between those who are welcoming the Western retailers, and those who are happy with the long standing tradition of private owned Indian companies. India is very interested to see how Walmart will take off in their country-so far, the company misjudged some of their targeted costumers, resulting in the withdrawel from South Korea and Germany. The Bharti Enterprise has also never worked with such a large coporation, so Walmart is very keen at the moment on their movement to India. Arvind Singhal, chairman of KSA Technopak, says ” Bharti and Walmart make a formitable combination. One is the worlds largest retailer and the other is amongst Indias most aggressive companies.” Some critics say that with the coming of Walmart, there will be a rise of jobless people and the polution will rise with more driving to the retail store. In general, the Indian retail industry is expected to raise from $300 billion to a year to $635 billion a year by 2015.

Walmart going to India, is not a totally new thing. They already have their hand in the in a sourcing operation, purchasing $ 1.6 billion worth of leather goods and textiles to sale around the world. However, there are still cultural complications that could arise and that Walmart should watch out for. But right now, Walmart sees India as the new place to go, and as long as there is buisness there, they are planning to stay.

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