Wal-Mart might enter India with a partnership

Wal-Mart might enter India with a partnership

Wal-Mart has been considering India to expand their operations worldwide since a very long time. However, the company has been facing resistance from the Indian government and the local industries considering the bad reputation they have with labor related issues and how they affect local manufacturing units.

However, the company is now considering collaborating with some Indian entity to make an entry into the Indian market to get around some of the legal hassles posed by government policies.

Ms Beth Keck, Director, International Corporate Affairs, Wal-Mart International said in a statement: “We often work with partners and have done so in countries like Japan, Central America, Mexico, and China. They have been able to give us a better understanding of local customers, which has helped us to operate more effectively in these countries. We may consider this approach for India too.”

She further added: “We welcome the Indian Government’s movement in allowing 51 per cent FDI in retail to single brand companies and hope they eventually will open this sector more broadly to foreign investment.”

Keck also said that the company would continue to expand their imports from the Indian market. She said: “Direct sourcing from the region will continue to grow, as suppliers in India, Sri Lanka, and Nepal are innovative and respond quickly to new trends for apparel and goods found in Wal-Mart retail outlets.”