• Saturday, December 7, 2019

Global retailer Wal-Mart sets up new company in India #Wal-Mart is Back

Discussion in 'Central & South Asia' started by Chanakya's_Chant, Jan 19, 2014.

  1. Chanakya's_Chant

    Chanakya's_Chant SENIOR MEMBER

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    Global retailer Wal-Mart sets up new company in India #Wal-Mart is Back

    [​IMG]

    A probe, ordered by the Indian government in December 2012, into lobbying activities undertaken by Walmart to enter Indian retail market remained inconclusive.
    NEW DELHI: Global retail giant Wal-Mart has registered a new company in India as it prepares to enter the country's lucrative multi-brand retail market with a new partner.

    The American retail major and Bharti Enterprises decided to part ways in October last year, bringing an end to their six-year long partnership.

    The retailer has registered a new company called 'Wal-Mart India Private Ltd' in the country, according to the data available with the Ministry of Corporate Affairs.

    According to the information, the new entity was registered on January 15, 2014.

    After parting ways with Bharti group in October last year, Wal-Mart had said it was studying the feasibility of India's FDI policy in multi-brand retail before finalising plans to enter the segment.

    The retailer and Bharti Enterprises had last year decided to independently own and operate separate business formats in the country. Wal-Mart is looking for a partner in India.

    In December 2013, Wal-Mart received the green signal from the Competition Commission of India (CCI) to purchase Bharti group's almost 50 per cent stake in their Indian joint venture for wholesale stores business.

    The joint venture -- Bharti Wal-Mart Private Ltd -- was set up to operate wholesale stores under the Best Price Modern Wholesale brand. It was not catering directly to retail consumers in the country.

    Wal-Mart has been lobbying with American lawmakers since 2008 for facilitating its entry into the Indian market, according to lobbying disclosure reports filed by the company in the US.

    A probe, ordered by the Indian government in December 2012, into lobbying activities undertaken by Walmart to enter Indian retail market remained inconclusive.

    The one-man inquiry panel, in its report tabled in the Rajya Sabha last month, could not "conclude in the absence of any material evidence available on record up till now, that Walmart indulged in any lobbying/bribery to Indian officials".

    Lobbying is a legal activity in the US, but all the companies and their registered lobbyists need to file quarterly disclosure reports with the Senate and the House of Representatives.

    In its Action Taken Report on Walmart probe, the governme ..

    In its Action Taken Report on Walmart probe, the government had said it would initiate fresh action against Walmart if an ongoing 'foreign corrupt practices' probe by US authorities reveals any violation in India by the retail giant.

    Source:- Global retailer Wal-Mart sets up new company in India - The Economic Times
     
  2. Star Wars

    Star Wars BANNED

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    Walmart destroyed all local businesses in U.S , id prefer if these creeps stayed away ....
     
  3. Anubis

    Anubis SENIOR MEMBER

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    This thing literally eats every single small business wherever it goes!Even local cha-walas will be out of business if Wlamart sets up shop!
     
  4. Chronos

    Chronos SENIOR MEMBER

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    The argument that has been put forward, one of them is that the back-end supply chain, the one that gets goods into the Store, is very weak and foreign investment can improve 'cold storage' and thus prevent many good just perishing away.

    I mean, India is still seen as a very hostile place to conduct business. A snub now would mean a possible snowball effect.
     
  5. lightoftruth

    lightoftruth BANNED

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    I hope they partner asap and open markets on delhi-haryana border.
     
  6. Chanakya's_Chant

    Chanakya's_Chant SENIOR MEMBER

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    Well I think for the proper economic growth of the nation FDI is important and the advent of Wal-Mart in the Indian markets is a part of the same - yes there are grave concerns over it as it may adversely impact the small businesses running in India but we cant rule out the fact that such investments are a necessary evil - rather it should be regulated properly - terminating them all is not a solution - Whats your take on it?
     
  7. Skull and Bones

    Skull and Bones BANNED

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    We need to check on organized retail, on metros it's pretty good, but they should not step in medium/small towns.
     
  8. Anubis

    Anubis SENIOR MEMBER

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    But cold storages are inexpensive....why would India need foreign investment for building cold storages.....government initiative and private investment is enough for that.....we do not have that problem in BD....but then again we are a small country with a lot of hungry people!Get Microcredit providing NGOs to make these storages for their farmer clients.....they can charge a fee for it but it is a good way to start!
     
  9. Prometheus

    Prometheus SENIOR MEMBER

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    why people fears that small shop owners will be closed down???

    in my city .....reliance fresh , more and easy day .....all are on same road .............with lots of small and medium sized shops near by...................i havent noticed any less number of customers on these local shops.................

    fdi is important .............as i belong to a farming family............we would love to get buyers for our produce rather then selling to govt at cheap prices and then waiting for many months to get money from them.......
     
  10. Chanakya's_Chant

    Chanakya's_Chant SENIOR MEMBER

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    They are regulated to a suitable extent - They cannot be set up in cities/towns having a population of less than 1 million and moreover its up to the state governments to decide whether they will allow it or not - majority have declined

    [​IMG]

    Updates - Delhi and Odisha are not going to allow it but Karnataka is allowing it (change of government after elections) (congress in favor and BJP not in favor)
     
  11. jarves

    jarves SENIOR MEMBER

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    FDI is very important for poor countries like India ......
     
  12. Jade

    Jade SENIOR MEMBER

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    Although retail sector is very lucrative and a trillion dollar industry, the FDI norms are not particularly friendly.

    In US, Walmart alone directly employs near 2 million people, millions of more in indirect way.

    For those who say that small business will loose: That is the way things were always in history. When Industrial revolution arrived, hand-loom weaver lost jobs. When internet arrived typists and travel agents lost their jobs. But statistics suggest that those who lost jobs got educated and got better jobs.
     
  13. Chronos

    Chronos SENIOR MEMBER

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    This is India.

    We do not use initiative and government in the same sentence.
     
  14. Anubis

    Anubis SENIOR MEMBER

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    True......but if you really going to make your small industries loose to a big industry please make it an Indian company!
     
  15. Jade

    Jade SENIOR MEMBER

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    Correction...small retailers may loose, but small industries will gain immensely.

    May I ask how India can make Walmart an Indian company, unless Walmart itself deregisters itself in US and incorporates in India. Any why it should make a difference.

    Walmart will stimulate local manufacturing Industries - It has done that in US and in China and will do that again in India, and that is what India requires to generate next round of economic growth.