Wal-Mart is reportedly investing US$103 million in its Indian operations with the goals to expand its wholesale store count and increase its online presence.
According to the Wall Street Journal, Wal-Mart intends to increase the number of its wholesale stores from the current 20 to 70 in the next five years. Walmart wholesale stores sell only to other businesses like mom-and-pop shops, restaurants and hotels.
The world’s largest retailer is also ramping up its online operations so it can give its wholesale customers 24-hour delivery for anything they order online.
Rajneesh Kumar, vice-president for corporate affairs at Wal-Mart India, told WSJ that the equity infusion is to fund the working capital and capex requirements of Wal-Mart’s cash-and-carry business in India.
In an interview with Mint in June, the newly-appointed CEO of Wal-Mart India Pvt. Ltd, Krish Iyer, had suggested that the company could expand its B2B e-commerce operations by January 2015, starting with Lucknow and Hyderabad, and adding more cities gradually.
India’s retail market, with about US$400 billion a year in sales, is expected to expand to more than US$1.3 trillion by 2020, according to PricewaterhouseCoopers.
Source retailasiaonline.com