walmart entering india

8/2/2019 Walmart Entering India

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Compiled ByNandita SharmaBBA 4th semester


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The Indian retail industry is the fifth largest in the

world. The retail industry in India is currently growing at a

great pace and is expected to go up to US$ 833 billionby the year 2013

CHALLENGES FOR RETAIL INDUSTRIES The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill


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HISTORY

The birth of discount retailingMost people think discount retailing began in 1962 the year that Kmart, Target, and Walmart first opened.But actually, the chain of variety stores Sam Walton

owned during the 1950s faced stiff competition frommany regional discount stores.

1962 Walmart begins

1972 Walmart goes public

The 1980s Walmart comes of ageThe 21st century one of the most successful retailers in

the world

Sams secret give your customers what they want


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1962 - 1964


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Total retail units as of July 31, 2010: 2

Best Price: 2 Associates: 544*

About Bharti Walmart Private Limited

Bharti Walmart Private Limited is a joint venture between

Bharti Enterprises, one of India's leading business groupswith interests in telecom, agri-business, insurance and retail,and Walmart, the worlds leading retailer, renowned for itsefficiency and expertise in logistics, supply chainmanagement and sourcing. The joint venture is establishingwholesale cash-and-carry and back-end supply chain

management operations in line with Government of Indiaguidelines. Under the agreement, Bharti and Walmart hold a50:50 stake in Bharti Walmart Private Limited. The firstwholesale cash-and-carry facility named Best Price ModernWholesale opened in Amritsar in May 2009.


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Best Price Modern Wholesale store is a one-stop shop that meets the day-to-day needs ofrestaurant owners, hoteliers, caterers, fruit and

vegetable resellers, kiranas, other retail storeowners, offices and institutions. The storeoffers an assortment of approximately 6,000items, including food and non-fooditems,

which are available at competitive wholesaleprices,allowing retailers and business ownersto lower their cost ofoperations.


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A typical wholesale cash-and carry facility willstand between 50,000 and 100,000 square feetand sell a wide range of fruits and vegetables,

groceries and staples, stationery, footwear,clothing, consumer durables, and other generalmerchandise items.


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The joint venture has also invested in establishing

an efficient back-end supply chain managementoperation. The joint venture works with theexisting supply chain infrastructure to help make itmore efficient, thereby maximizing value forfarmers and manufacturers on the one end and

retailers, and in turn, consumers on the other. Thesupply chain operation supports farmer and smallmanufacturers who have limited infrastructureand distribution strength and help minimizewastage, particularly of fresh foods and vegetables


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In addition to the joint venture, Bharti Retail (awholly-owned subsidiary of Bharti) hasentered into a franchise agreement withWalmart whereby Walmart provides certain

technical support to Bharti Retail. For its front-end retail venture, Bharti Retail requires criticalretail technology and technical know-how.Within the framework of permitted franchise

arrangements, Bharti Retail has entered into atechnical collaboration with Walmart wherebyWalmart provides such critical technicalsupport to Bharti Retai


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Walmart has been sourcing a variety ofproducts from suppliers in India for more than

20 years. Walmarts office in Bangalore servesas Walmarts Global Procurement (GP) hub forthe sourcing of merchandise from India and SriLanka to Walmart stores and Sams Clubsglobally. GP India also manages Global

Procurement from Sri Lanka, including qualitycontrol/ assurance audits and ethical sourcing

factory compliance audits in Sri Lanka.


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Sam Walton said it best,If we work together,well lower the cost of

living for everyonewellgive the world an

opportunity to see whatits like to save and have a

better life.


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Thank you

walmart entering india

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