Walmart International CEO's maiden India visit next week

'Routine' trip to coincide with restart of retail chain's expansion after two years

David Cheesewright, president and chief executive officer, Walmart International, is expected to visit India next week.

Cheesewright’s first trip to India coincides with the American chain restarting its expansion in the country after two years. A company executive termed the visit as “routine” to review the cash-and-carry (wholesale) operations in India.

The date of travel was not revealed by the company.

Walmart, the $476-billion supermarket chain and the largest retailer in the world by revenue, operates 20 cash-and-carry stores in India, and is planning to open the next one in Agra soon. The chain had stopped its expansion after 2012 due to an internal probe under the Foreign Corrupt Practices Act in the US. Walmart also broke up with its India partner, Bharti Enterprises, in 2013 bringing all expansion plans to a halt.

Even as Walmart has been keen on multi-brand retail in India, it’s present so far only in the cash-and-carry space, where 100 per cent foreign investment is allowed. Multi-brand retail has not seen any foreign investment except from UK’s Tesco ($100 million), despite the policy being partially eased in 2012. While 51 per cent foreign direct investment (FDI) is permitted in multi-brand retail, several tough guidelines have kept international players from entering the space.

Also, the current National Democratic Alliance government has been opposed to FDI in multi-brand retail.

While Walmart had tied up 50-50 with Bharti for cash-and-carry, Germany’s Metro and France’s Carrefour entered the category on their own. However, Carrefour exited India recently.

In December 2013, Walmart had announced that Cheesewright, who was then heading the chain’s Europe, Middle East and Africa operations, would be promoted to president and CEO of Walmart International. Cheesewright reports to Doug McMillon, president and CEO of the chain.

Walmart’s international division generates nearly 30 per cent of the company’s revenue, serving more than 109 million customers every week in more than 6,200 retail units under 64 banners in 26 countries outside the US, according to the company website.