Walmart says its retail business with Bharti ‘not tenable’

Walmart Stores will explore newer opportunities of

carrying out its retail plans in India. Talking to media on the sidelines of the APEC conference in Bali, Indonesia, Walmart Asia chief executive Scott Price has said that their retail plans with Indian partner Bharti Enterprises are "not tenable" and both sides are looking for the best way to move forward. He said they are now talking with Bharti about to do with that business. It maybe recalled that Walmart has a 50:50 joint venture partnership with Bharti Retail under which it runs its Best Price Modern Wholesale Stores in India. Last year Walmart had called Bharti its "natural partner" to open its retail stores in the country. In July, there were reports of Bharti looking to exit its joint venture with Walmart.

Recently there were reports that sighting lukewarm response to its FDI policy in multi-brand retail, the government has plans to ask Walmart to indirectly source 10 percent of its raw material through agents from small and medium enterprises, since the global retail giant had expressed reservations over the 30 percent mandatory sourcing FDI norm. The latest development comes after Price and Walmart India Head Ramnik Narsey, met DIPP secretary Saurabh Chandra to seek clarification on the sourcing norms. The 30 percent mandatory sourcing norm is the one big bug bear for Walmart’s retail business in India.

As of now, Walmart is present in India through a 50:50 cash-and-carry joint venture with Bharti Enterprises and has no plans to leave the country. The retailer now wants to stick to the wholesale business in the country and expand it. Despite Indian government allowing foreign retailers to own 51 percent FDI in their Indian operations, mandatory rules of the policy have forced them to put their plans on hold.