US retail giant Wal-Mart Stores Inc today said its entry into India's multi-brand retail would depend on the FDI policy and the conditions required for getting into the segment.
The company, which operates a 50:50 joint venture with Bharti Enterprises for wholesale cash-and-carry and back-end supply chain management operations in India, is currently watching developments regarding allowing of foreign direct investments (FDI) in multi-brand retail.
"It all depends on when the FDI is allowed and how it is allowed," Walmart India President Raj Jain told PTI when asked if Walmart would re-consider its current business model in India if the FDI in multi-brand retail is allowed.
Recently, a Committee of Secretaries (CoS) had proposed allowing up to 51% FDI in the politically sensitive multi-brand retail segment with a rider that a minimum of $100 million investment should be made.
Moreover, the CoS had also recommended that 50% of FDI component would have to be deployed in the back-end infrastructure, like warehousing and cold storage.
The existing policy allows 51% FDI in single brand retail and 100% in wholesale cash-and-carry but none in multi-brand.
Jain said Walmart is happy with its current partnership with Bharti.
The Bharti-Walmart joint venture currently operates seven cash and carry stores under the 'Best Price Modern Wholesale' brand. It also supplies to the retail stores operated by Bharti Retail.
In the meantime, Walmart has already launched several programmes to work directly with their suppliers and with farmers for direct sourcing, Jain added.
