Wal-Mart Stores reported a rise in comparable sales at US stores in the third quarter today but earnings dipped due in part to the strong dollar.
Walmart, the world's biggest retailer, said earnings for the quarter ending October 31 were down 11 percent to USD 3.3 billion. That translated into USD 1.03 per share, better than the 98 cents projected by analysts.
Walmart's biggest division for namesake US stores saw revenues edge higher behind a 1.5 per cent gain in comparable store sales. Walmart has boosted wages for US workers and beefed up its online business in an effort to keep customers coming to its big-box shopping centers.
Revenues came in USD 117.4 billion, down 1.3 per cent from the year-ago period.
Sales in Walmart's international division dropped 11.4 per cent, while the Sam's Club chain saw a 2.2 per cent decline in sales.
"Strong traffic and our fifth consecutive quarter of positive comps in Walmart US stores show we are taking the right steps to win with customers," said chief executive Doug McMillon.
"Although we still have work to do, we are positioning for sustainable growth through investments in people and technology to deliver a seamless shopping experience at scale."
Walmart forecast full-year earnings of USD 4.50-USD 4.65 per share. It previously projected annual earnings of USD 4.40-USD 4.70 per share.
Shares of Walmart rose 2.6 per cent to USD 59.36 in pre-market trade.
Talking about the food processing sector, Srivastava said
that government is taking lot of steps to boost the sector.
"Our projects are quite power intensive. Be it our mega food parks or cold chains. We have requested Solar Energy Corporation of India to formulate a proposal for providing solar energy in mega food parks and cold chains. We are preparing a proposal of 47. It will help in reducing consumption of power," he said.
The ministry has also floated expression of interest for six new mega food parks.
To promote foreign investment in the sector, he said "we have kept a special condition (in the EoIs). So to promote foreign investment, we have said that we will give 2 or 3 extra marks to the marking scheme if you bring in foreign equity of 26 per cent or more".
He also said that FDI in the sector will give a huge boost to the sector and also job creation.
Speaking at the briefing, Special Secretary in the ministry Jagdish Prasad Meena said that PepsiCo is growing potatoes with farmers and they are also talking to develop clusters for citrus production.
Meena said that in the next few months, the ministry will come out with new schemes to improve infrastructure.
The food processing sector received FDI worth USD 1.04 billion during April 2014 to March 2015. Food processing industry contributed around 9 per cent to the manufacturing GDP.
The industry was valued at USD 39.71 billion in 2013 and it is expected to grow at a CAGR of 11 per cent to USD 65.4 billion by 2018.
"32 lakh tonnes capacity of cold storage has been created with an expenditure of Rs 9,000 crore within the last two years. This is expected to reduce wastage by 10 per cent per annum or Rs 9200 crore every year," Srivastava said.
Over the last two years, 51 cold chain projects have been completed and six mega food parks have been operationalized since June 2014.
Some of the major investments received in the last two years include Linde Group investment of USD 200 million in seafood segment in Andhra Pradesh; US-based Mondelez International has inaugurated its new manufacturing plant in Andhra Pradesh.
This plant has been set up with an investment of rs 1265 crore with an annual capacity of 250,000 tonnes.
Mars International India, a leading chocolate maker, has invested USD 114.63 million in Pune. With a total investment of USD 33.96 million, Kellogg's unit in Andhra Pradesh provides employment to 500 persons.
The company is also planning to set up an R&D facility and their third cereal facility in Mumbai.
Fresh dairy products player Danone Asia pacific Holdings
has invested USD 24.24 million and is expanding its manufacturing facility in Lalru near Chandigarh.
Domestic companies, including Patanjali Ayurveda, have also announced major investments in the last two years.
Patanjali is planing to set up Rs 500 crore food processing unit in Madhya Pradesh. The state has cleared 400 acres of land for this. It is expected to provide jobs to about 700 people.
Balaji Wafers is investing USD 61.5 million in building a plant for wafers and snacks in Madhya Pradesh. It has acquired land and would employ 1000 people.
