Walmart India Sales Exceed $630 Million

“This year, India was made a priority market for Walmart, which means we’re getting more resources, more talent. This will help in accelerating stuff, and investments in the back-end and the supply chain will happen,” Krish Iyer, president and CEO, Walmart India, told BusinessLine.

It was not always this way. Four years ago when Iyer took charge of Walmart India’s operations there were allegations of  bribery against some of its executives, and the future of its retail business seemed uncertain given the foreign direct investment rules governing the sector. Iyer empahsized the unique aspect of Walmart India in selling to small wholesale buyers in India  (rather than consumers) with its chain of cash-and-carry stores. Today each of Walmart’s India stores has turned profitable at the store level.

Walmart best price store in India

Walmart “Best Price” store in India

Walmart has 20 cash-and-carry  stores in India and is expected to launch 50 stores by 2021 at an overall investment of over $500 million. It’s launched its first fulfillment center in Mumbai, which will focus exclusively on consumer products and staples.

For the 15 months ending March 2016, Walmart India posted sales of over $630 million.Pinakiranjan Mishra, partner and sector leader (Consumer Products and Retail), EY, says, “If the foreign players can build scale the way they have abroad, the market opportunity is huge. The market is large enough for foreign and local players in cash and carry. I believe the key will be in execution and building supply chains, more than getting market share.”

 

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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