Small businesses protest Wal-Mart's India entry

Wal-Mart's high-powered delegation's visit to India sparked a stormy protest by a state-wide federation of small businesses. They were protesting against the entry of the retail giant into the country.

The Federation of Associations of Maharashtra said the entry of the retail giant would have a negative impact on the local retailers and their livelihood.

Addressing a news conference, Mohan Gurnani, president of FAM said, "Wal-Mart is forcing its entry into the retail market through the backdoor. This company has driven out thousands of local businesses in the US and other countries".

India is in the midst of a retail revolution that could replace many of the small kirana stores with a multi-billion dollar industry of air-conditioned supermarkets offering booming middle classes convenience buying.

Wal-Mart Vice-Chairman Michael Duke is in Mumbai to finalise details of the joint venture with Bharti.

"It is not just Wal-Mart that is of concern but also companies such as Reliance and Subhiksha, which are opening small stores which are in direct competition with local kirana stores," he said.

Mahesh Kambli, CEO of Apna Bazaar, added, " Wal-Mart has saturated markets in the US. The retail major drives out local competition and then jacks up prices."

The FAM was joined in the protest by other trade associations, including hawker unions, cooperative stores and labour unions.

Gurnani alleged that Wal-Mart is the biggest monopoly retailer in the world and is well known for displacing small retailers, violating labour laws and exploiting its suppliers.

The association quoted a study conducted by Professor Anuradha Kalhan of Jai-Hind College, which has revealed that within a kilometer radius of Phoenix Mills Mall in Lower Parel and Nirmal Lifestyles in Mulund, 71 per cent of small businesses have reported a decline in sales.

Advocate Vinod Shetty of the India FDI Watch Campaign, said all those sections of the society which will be impacted by Wal-Mart should protest against the entry of big corporations.

"Wal-Mart should learn the lessons of Germany and South Korea and think again before entering into India because this will be their fiercest challenge yet," Shetty said. Apart from Reliance, Wal-Mart and the Birlas, Tesco and Carrefour are looking at a $300 billion market which is expected to double by 2015.

Of this, Reliance Industries itslef is investing $5.6 billion in some 700 stores.