Wal-Mart Award: 9 Indian cos among 53 global winners

* Welspun wins coveted trophy for Sustainability

Mumbai, May 17, 2007 "� Nine Indian companies from across India were among the 53 winners of the 'Wal-Mart International Supplier of the Year Award' for 2006. The awards were presented by Wal-Mart, the world's No 1 retailer, in Shenzhen, China, recently to recognise outstanding supplier accomplishments.

Among the nine Indian companies, Welspun won the coveted trophy for Sustainability - a new initiative instituted by Wal-Mart - for taking environmental protection to new levels, adhering to Wal-Mart's Standards for Suppliers as well as for the quality of goods manufactured and the company's commitment to on-time delivery.

The other eight companies that were presented awards on the day were Leela Scottish Lace, The Richa Group, JJ Mills and Kaytee Corporation (all for apparel), Elegant (diamond jewellery), and Abhishek Industries, Abhitex and JVS (for towels and home textiles).

The 'Wal-Mart International Supplier of the Year Award' is a coveted award within the supplier community. This is the fifth year that the awards have been presented. This year, in total, around 100 suppliers globally were nominated, out of which 53 suppliers were ultimately recognized. The award is based on the performance of companies on a number of parameters such as quality of goods, on-time delivery, ethical standards compliance, business growth, price performance and adherence to Wal-Mart's philosophy and beliefs.

"We are proud to have been recognized by Wal-Mart as a globally-reliable, quality supplier of products manufactured in a sustainable manner. This award is an acknowledgment of the global quality and service standards that we have been successful in implementing and our commitment to be an environmentally-friendly company. In addition, this award highlights Welspun's strict compliance with Wal-Mart's Standards for Suppliers, thereby ensuring better working conditions for our factory workers," said Mr Rajesh Mandawewala, Joint Managing Director, Welspun India.

Mr Rajnish Kapur, General Manager of WM Global Sourcing India Private Limited said, "To win the 'Wal-Mart International Supplier of the Year Award' you have to be the best. By winning the award, all these nine companies have shown that suppliers in India are indeed world-class. In today's competitive global marketplace, Wal-Mart's sourcing strategy revolves around purchasing merchandise wherever we can find the best. We expect direct sourcing from the region will continue to grow as suppliers in the region are innovative and respond quickly to new trends and business opportunities."

Wal-Mart is one of the top two sourcing retail companies from India and has been sourcing a variety of products from suppliers in India for more than 20 years. Wal-Mart's office in Bangalore serves as Wal-Mart's Global Procurement (GP) hub for the sourcing of merchandise from India and Sri Lanka to Wal-Mart stores and Sam's Clubs globally. In 2006, Wal-Mart directly sourced merchandise worth approximately US$ 600 million through GP India. The company also indirectly purchases Indian products from suppliers that source in the region. The major categories sourced from India include home textiles, apparel, fine jewellery and house wares.

"Wal-Mart's position as one of the leading buyers of Indian products is a position carefully earned over the years through close partnership with our suppliers. Efficiency, accountability and mutual advantage are key to our definition of excellence in our supplier partnerships. Our supplier alignment team is responsible for identifying world class suppliers and developing mutual beneficial relationships. It is these relationships that have enabled thousands of suppliers create their own success stories through their work with us," Mr Kapur added,

The benefits of a Wal-Mart partnership are mutual. Wal-Mart's large number of locations creates an attractive opportunity for suppliers to get their items in front of the nation and the world. "Many of our suppliers have seen tremendous growth and have successfully established global quality, scale and standards purely because they now have the opportunity to supply to global retail chains like Wal-Mart. To cite two examples: Sabare International supplies home furnishings to Wal-Mart. Over the past six years, the company has grown exponentially "� from a Rs 20 crore company in FY 2001 to nearly Rs 500 crore in FY 2007. Welspun India has seen revenues treble since 2002 and is now a Rs 940-crore company," Mr Kapur said.

The demand for the company's products also creates jobs and improves the way of life in the communities where the suppliers operate. For e.g. Shahi Exports have increased their workforce to 30,000 from 9,000 since it began supplying to Wal-Mart in 1998. C.L. Gupta which began supplying to Wal-Mart in 2000 has grown from 250 employees then, to 1300 employees today. JVS Exports has witnessed a similar trend with its employee base increasing from 100 in 1998 to 2000 today. Then, as suppliers keep up with demand, Wal-Mart also benefits in that it can provide quality products and services to its customers at low prices, which, in turn, improves customers' lives, too.

About Wal-Mart Stores, Inc. (NYSE: WMT): Wal-Mart Stores, Inc. operates Wal-Mart discount stores, Supercenters, Neighborhood Markets and Sam's Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. The Company's securities are listed on the New York Stock Exchange under the symbol WMT. More information about Wal-Mart can be found by visiting www.walmartfacts.com.