Wal-Mart's India buy to touch $1.2bn

Global retail giant Wal-Mart is expected to source $1.2 billion worth of goods from factories and suppliers in India during 2005.

Major categories sourced by the retail chain from India include home textiles, apparel, fine jewellery and housewares.

Direct procurement by Wal-Mart from India stood at $300 million in 2004, , an official statement said.

"In 2005, Wal-Mart expects sourcing from India to increase to about $400 million. In addition, the company estimates another $800 million in products to be provided by third-party suppliers," the statement added.

Wal-Mart's office in Bangalore serves as its Global Procurement (GP) hub for sourcing of merchandise from India, Nepal and Sri Lanka. The GP hub in India also overseas the GP hub in Colombo, it said.

"Wal-Mart expects direct sourcing from the region to grow as suppliers in India, Sri Lanka and Nepal continue to be innovative and supportive of trends for apparel and goods found in Wal-Mart retail outlets," the statement said.